Examining the Trade Effect of Certain Customs and Administrative Procedures

Content rated: 3.00 out of 4 (1 vote)

Release date

Apr 30, 2007 

Published date

2007 

Description

Recent research at OECD provides new evidence that customs and administrative procedures
have substantial effects on trade flows. Although customs and administrative procedures are necessary for the smooth application of trade and other policies, they can “thicken” the borders between trading partners if the customs and administrative procedures are more stringent than necessary or inefficient. We use metrics of customs and administrative procedures from the World Bank "Doing Business" survey (2005) to estimate gravity models to estimate the effects of the customs and administrative procedures on trade flows between bilateral trade partners.
The results show that all countries can benefit from more efficient customs and administrative
procedures, with the greatest benefits accruing to those countries with the least efficient customs and administrative procedures. To gain the greatest benefit from improving customs and administrative procedures, both trade partners need to make efforts, even if these efforts are not equivalent. Additionally, the model suggests that some procedures have a greater effect on trade flows than others.

 

This document (OECD Trade Policy Working Paper Nr. 42) is available for download from the OECD website.

 

Type

Reference Documents , Reports/Studies , Working Papers  

Copyright Status

Copyrighted 

Relevance Degree

Good Read 

Topics

Border Agency Modernization , Customs Issues , Customs modernisation , Economic Development and Trade Facilitation , Facilitation and supply chain management , Measuring the economic impact of trade facilitation , Security and facilitation of the international trade supply chain , Streamlining and harmonization , Trade Logistics and Facilitation , Trade Logistics practical measures  

Authoring partners

 

Geographic coverage

Regions:
Countries:
Global: Yes