The Heterogeneous Cost of Port-of-Entry Delays
Time delays in international transactions impose trade costs. We examine transaction level Peruvian import data to show that firms are subject to significant costs of port-of-entry delays. At the airport an additional day of delay raises costs by about 1.6 percent for all firms. At the seaport, an additional day of delay raises costs for small firms by about 0.7 percent and by 0.9 percent for large firms. The higher costs at the airport are partially offset by a clearance time that is on average about 5 days faster than at the seaport. These estimates inform policy where limited public resources realize the highest bang for the buck to mitigate trade costs. We also find that median delays are heterogeneous across importers and importer-exporter relationships. Therefore, firm specific trade facilitation that improves shipment and document handling to reduce delays is an alternative to policyaction that reduces average delays.
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Format: | Discussion Papers & Presentations biblioteca |
Language: | English |
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Inter-American Development Bank
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Subjects: | Airport, Trade Facilitation, Investment, Trade Agreement, Taxation, F - International Economics, Trade Costs;Port Efficiency;Peruvian Firms;Trade Facilitation;Transportation Costs, |
Online Access: | http://dx.doi.org/10.18235/0006986 https://publications.iadb.org/en/heterogeneous-cost-port-entry-delays |
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dig-bid-node-120792024-05-30T19:40:38ZThe Heterogeneous Cost of Port-of-Entry Delays 2014-04-01T00:00:00+0000 http://dx.doi.org/10.18235/0006986 https://publications.iadb.org/en/heterogeneous-cost-port-entry-delays Inter-American Development Bank Airport Trade Facilitation Investment Trade Agreement Taxation F - International Economics Trade Costs;Port Efficiency;Peruvian Firms;Trade Facilitation;Transportation Costs Time delays in international transactions impose trade costs. We examine transaction level Peruvian import data to show that firms are subject to significant costs of port-of-entry delays. At the airport an additional day of delay raises costs by about 1.6 percent for all firms. At the seaport, an additional day of delay raises costs for small firms by about 0.7 percent and by 0.9 percent for large firms. The higher costs at the airport are partially offset by a clearance time that is on average about 5 days faster than at the seaport. These estimates inform policy where limited public resources realize the highest bang for the buck to mitigate trade costs. We also find that median delays are heterogeneous across importers and importer-exporter relationships. Therefore, firm specific trade facilitation that improves shipment and document handling to reduce delays is an alternative to policyaction that reduces average delays. Inter-American Development Bank Jerónimo Carballo Alejandro Graziano Georg Schaur Christian Volpe Martincus Discussion Papers & Presentations application/pdf IDB Publications Peru Latin America en |
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Airport Trade Facilitation Investment Trade Agreement Taxation F - International Economics Trade Costs;Port Efficiency;Peruvian Firms;Trade Facilitation;Transportation Costs Airport Trade Facilitation Investment Trade Agreement Taxation F - International Economics Trade Costs;Port Efficiency;Peruvian Firms;Trade Facilitation;Transportation Costs |
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Airport Trade Facilitation Investment Trade Agreement Taxation F - International Economics Trade Costs;Port Efficiency;Peruvian Firms;Trade Facilitation;Transportation Costs Airport Trade Facilitation Investment Trade Agreement Taxation F - International Economics Trade Costs;Port Efficiency;Peruvian Firms;Trade Facilitation;Transportation Costs Inter-American Development Bank The Heterogeneous Cost of Port-of-Entry Delays |
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Time delays in international transactions impose trade costs. We examine transaction level Peruvian import data to show that firms are subject to significant costs of port-of-entry delays. At the airport an additional day of delay raises costs by about 1.6 percent for all firms. At the seaport, an additional day of delay raises costs for small firms by about 0.7 percent and by 0.9 percent for large firms. The higher costs at the airport are partially offset by a clearance time that is on average about 5 days faster than at the seaport. These estimates inform policy where limited public resources realize the highest bang for the buck to mitigate trade costs. We also find that median delays are heterogeneous across importers and importer-exporter relationships. Therefore, firm specific trade facilitation that improves shipment and document handling to reduce delays is an alternative to policyaction that reduces average delays. |
author2 |
Jerónimo Carballo |
author_facet |
Jerónimo Carballo Inter-American Development Bank |
format |
Discussion Papers & Presentations |
topic_facet |
Airport Trade Facilitation Investment Trade Agreement Taxation F - International Economics Trade Costs;Port Efficiency;Peruvian Firms;Trade Facilitation;Transportation Costs |
author |
Inter-American Development Bank |
author_sort |
Inter-American Development Bank |
title |
The Heterogeneous Cost of Port-of-Entry Delays |
title_short |
The Heterogeneous Cost of Port-of-Entry Delays |
title_full |
The Heterogeneous Cost of Port-of-Entry Delays |
title_fullStr |
The Heterogeneous Cost of Port-of-Entry Delays |
title_full_unstemmed |
The Heterogeneous Cost of Port-of-Entry Delays |
title_sort |
heterogeneous cost of port-of-entry delays |
publisher |
Inter-American Development Bank |
url |
http://dx.doi.org/10.18235/0006986 https://publications.iadb.org/en/heterogeneous-cost-port-entry-delays |
work_keys_str_mv |
AT interamericandevelopmentbank theheterogeneouscostofportofentrydelays AT interamericandevelopmentbank heterogeneouscostofportofentrydelays |
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1806237066157096960 |