Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/146485
Authors: 
Carballo, Jerónimo
Schaur, Georg
Graziano, Alejandro
Volpe Martincus, Christian
Year of Publication: 
2016
Series/Report no.: 
IDB Working Paper Series IDB-WP-704
Abstract: 
In this paper, we estimate the effects of transit systems that substantially streamline 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.
Subjects: 
Transit Trade
Border Effects
Order Costs
Inventory
Shipping Frequency
JEL: 
F10
F13
F14
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by-nc-nd/3.0/igo/legalcode
Document Type: 
Working Paper

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