Does Foreign Trade Facilitation Improve Firms’ Export Performance? A Microeconomic Analysis of Chilean Manufacturing Plants

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June 2017
Paper author(s): 
Ricardo Lopez
Kathleen McQueeney
Globalization - Trade
Microeconomics - Competition - Productivity

This paper constructs sector-level measures of trade facilitation in foreign countries to examine the effect of reducing the costs required to import abroad on export activity of Chilean plants. The results show that decreases in the number of documents required to import and in the number of days required to import in international markets significantly increase the probability of exporting of Chilean plants, while a decrease in the number of documents required to import increases plants’ export intensity. The estimates also show that the effect of improved foreign trade facilitation is larger in sectors with relatively low foreign tariffs.


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