Trade Facilitation and Country Size

28 Pages Posted: 23 May 2011 Last revised: 11 Nov 2013

See all articles by Jamal Ibrahim Haidar

Jamal Ibrahim Haidar

Harvard University

Mohammad Amin

World Bank - Enterprise Analysis Unit

Multiple version iconThere are 2 versions of this paper

Date Written: October 30, 2013

Abstract

It is argued that compared with large countries, small countries rely more on trade and therefore they are more likely to adopt liberal trading policies. The present paper extends this idea beyond the conventional trade openness measures by analyzing the relationship between country size and the number of documents required to export and import, a measure of trade facilitation. Three important results follow. First, trade facilitation does improve as country size becomes smaller; that is, small countries perform better than large countries in terms of trade facilitation. Second, the relationship between country size and trade facilitation is non-linear, much stronger for the relatively small than the large countries. Third, contrary to what existing studies might suggest, the relationship between country size and trade facilitation does not appear to be driven by the fact that small countries trade more as a proportion of their gross domestic product than the large countries.

Keywords: Country size, Trade facilitation, Openness, Geography, Proximity, Distance, Location

JEL Classification: F10, F13, F14, F15, F50, F55, H10, K00, L5, O20, 024

Suggested Citation

Haidar, Jamal Ibrahim and Amin, Mohammad, Trade Facilitation and Country Size (October 30, 2013). Empirical Economics, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1844945 or http://dx.doi.org/10.2139/ssrn.1844945

Jamal Ibrahim Haidar (Contact Author)

Harvard University ( email )

1875 Cambridge Street
Cambridge, MA 02138
United States

HOME PAGE: http://scholar.harvard.edu/haidar

Mohammad Amin

World Bank - Enterprise Analysis Unit

2121 Pennsylvania Avenue, NW
Washington, DC 20433
United States

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