Working Papers, Department of Economics, Lund University
Trade Facilitation and the EU-ACP Economic Partnership Agreements: Who Has the Most to Gain?
Abstract: The aim of the paper is to assess the potential benefits
from trade facilitation in terms of increased trade flows both on average
and specifically for the six regional groupings of ACP countries
negotiating Economic Partnership Agreements (EPAs) with the EU. We use data
from the World Bank’s Doing Business Database on the time required to
export or import as indicators of cross-border transaction costs. A gravity
model on two-way bilateral trade between 22 EU countries and 106 developing
countries is estimated using a sample selection approach. We find that time
delays both on the part of the exporter and the importer on average
significantly decrease trade flows. We also find that this relationship is
not linear: an extra day of waiting has smaller marginal effects if the
time requirements are already high. On average, lowering border delays in
the exporting country with one day from the sample mean would yield an
export increasing effect of about 1 percent, while the same reduction in
the importing country would give an import increase of about 0.5 percent.
More specifically, we also find that countries negotiating in the EPA
groups for SADC, West Africa, Eastern and Southern Africa (ESA), and the
Caribbean have negative and significant effects from export transaction
costs, as do EU and non-ACP developing countries. The effects for the SADC,
West Africa and ESA groups are the largest. Countries in the Pacific, SADC,
West Africa and the EU have significantly negative effects from import
transaction costs, with the effects being largest for the two former
groups. The results are generally robust to a number of alternative
estimation methods such as Poisson estimation, IV estimation and the sample
selection approach suggested by Helpman, Melitz and Rubinstein (2007).
Keywords: Trade Facilitation; EU; ACP; Economic Partnership Agreements; Gravity Model; Sample Selection; (follow links to similar papers)
JEL-Codes: C21; F15; O24; (follow links to similar papers)
30 pages, April 24, 2007, Revised October 1, 2007
This paper has been published under the titel "Trade Facilitation and the EU-ACP Economic Partnership Agreements".
- This paper is published as:
Persson, Maria, (2008), 'Trade Facilitation and the EU-ACP Economic Partnership Agreements', Journal of Economic Integration, Vol. 23, No. 3, pages 518-546
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