Transit Trade
Peer Reviewed
Date issued
Jun 2016
Subject
Exporting Firm;
Export Growth;
Export Market;
Trade Policy;
Export Promotion;
Trade Agreement;
Road Infrastructure;
Customs Administration
JEL code
F10 - Trade: General;
F13 - Trade Policy • International Trade Organizations;
F14 - Empirical Studies of Trade
Country
El Salvador
Category
Working Papers
In this paper, we estimate the effects of transit systems that substantiallystreamline administrative processing of trade flows. In so doing, we use a
unique dataset that consists of the entire universe of El Salvador's export
transactions over the period 2007-2013 and includes information on the
transactions channeled under a new transit regime established with
neighboring countries over the same period. Results suggest that this new
transit system has been associated with decreased order servicing and
variable trade costs. As a consequence, firms' exports increased primarily
through higher shipping frequencies. Furthermore, the effects have been
strong on foreign sales of time-sensitive goods. This evidence informs one
of the main policies covered in the 2013 WTO Agreement of Trade
Facilitation.
unique dataset that consists of the entire universe of El Salvador's export
transactions over the period 2007-2013 and includes information on the
transactions channeled under a new transit regime established with
neighboring countries over the same period. Results suggest that this new
transit system has been associated with decreased order servicing and
variable trade costs. As a consequence, firms' exports increased primarily
through higher shipping frequencies. Furthermore, the effects have been
strong on foreign sales of time-sensitive goods. This evidence informs one
of the main policies covered in the 2013 WTO Agreement of Trade
Facilitation.
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