Transit Trade

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.

Bibliographic Details

Main Author:	Inter-American Development Bank
Other Authors:	Jerónimo Carballo
Format:	Working Papers biblioteca
Language:	English
Published:	Inter-American Development Bank
Subjects:	Exporting Firm, Export Growth, Export Market, Trade Policy, Export Promotion, Trade Agreement, Road Infrastructure, Customs Administration, F10 - Trade: General, F13 - Trade Policy • International Trade Organizations, F14 - Empirical Studies of Trade, trade agreements;trade costs;exporting firm;trade facilitation,
Online Access:	http://dx.doi.org/10.18235/0011742 https://publications.iadb.org/en/transit-trade
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