Trade Facilitation and Country Size

30 Pages Posted: 20 Apr 2016

See all articles by Mohammad Amin

Mohammad Amin

World Bank - Enterprise Analysis Unit

Jamal Ibrahim Haidar

Harvard University

Multiple version iconThere are 2 versions of this paper

Date Written: November 1, 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 nonlinear, 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: Economic Theory & Research, Free Trade, Trade Policy, Transport and Trade Logistics, Common Carriers Industry

Suggested Citation

Amin, Mohammad and Haidar, Jamal Ibrahim, Trade Facilitation and Country Size (November 1, 2013). World Bank Policy Research Working Paper No. 6692. Available at SSRN: https://ssrn.com/abstract=2352102

Mohammad Amin

World Bank - Enterprise Analysis Unit ( email )

2121 Pennsylvania Avenue, NW
Washington, DC 20433
United States

Jamal Ibrahim Haidar

Harvard University ( email )

1875 Cambridge Street
Cambridge, MA 02138
United States

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

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