Quotation Oberhofer, Harald, Pfaffermayr, Michael, Sellner, Richard. 2021. Revisiting Time as a Trade Barrier: Evidence from a Panel Structural Gravity Model. Review of International Economics. 29 (5), 1382-1417.




In this paper, we revisit the evidence on the effects of time spent on border-crossing procedures for international trade using a theory-consistent structural gravity model. We exploit a rich panel dataset including domestic trade flows and employ a recent econometric estimator that exhibits favorable asymptotic properties for inference. The results indicate a significant negative effect of the time required for border procedures that is driven by the time needed for document preparation. We find that an additional day spent on those procedures corresponds to an ad valorem tariff equivalent of 0.4 percentage points. The parameters of our structural model are used to simulate three counterfactual scenarios, quantifying the effect of past and potential future trade facilitation efforts for middle-, low-, and high-income countries. Full endowment general equilibrium effects suggest that in times of stagnating multilateral and bilateral trade liberalization efforts, unilateral implementation of trade facilitation carries the potential to induce an alternative stimulus for trade and welfare, especially for low- and middle-income countries.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Review of International Economics
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, VW-C
Language English
Title Revisiting Time as a Trade Barrier: Evidence from a Panel Structural Gravity Model
Volume 29
Number 5
Year 2021
Page from 1382
Page to 1417
Reviewed? Y
URL https://onlinelibrary.wiley.com/doi/10.1111/roie.12547?af=R
DOI https://doi.org/10.1111/roie.12547
Open Access N


Oberhofer, Harald (Details)
Pfaffermayr, Michael (Universität Innsbruck, Austria)
Sellner, Richard (IHS, Austria)
Department of Economics (Badinger) (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
5323 Econometrics (Details)
5325 Political economics (Details)
5344 Foreign trade (Details)
5370 Industrial economics (Details)
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