Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/216964
Authors: 
Gnutzmann, Hinnerk
Gnutzmann-Mkrtchyan, Arevik
Year of Publication: 
2020
Series/Report no.: 
Hannover Economic Papers (HEP) 664
Abstract: 
How strongly can the reduction in bureaucracy and red tape at the border increase trade? To address this, we study an ambitious trade facilitation policy - the complete abolition of internal customs controls - in the Eurasian Customs Union. Using a structural gravity model with high-dimensional fixed effects, we find evidence that non-tariff trade facilitation strongly and robustly increases the number of newly traded products. The value of trade, however, reacts more strongly to a traditional tariff-driven diversion of trade towards union members. Trade facilitation policies can diversify bilateral trade, highlighting the importance of trade analysis at the extensive margin.
JEL: 
F14
F15
F55
Document Type: 
Working Paper

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