Trade obstacles, inventory level of inputs, and internationalization of enterprise activities: a comparison between Southeast Asia and Latin America

Available from: 
August 2014
Paper author(s): 
Yasushi Ueki
Globalization - Trade
Infraestructure - Transport - Water

This paper investigates the impact of trade barriers such as customs clearance, subjective trade obstacles (customs and trade regulations), and inventory of inputs on the internationalization of enterprises in Southeast Asia and Latin America, using the World Bank's enterprise surveys. Empirical results show a negative association between the internationalization of enterprises and subjective trade obstacles, while the impact of subjective trade obstacles is not significant on enterprises already internationalized. An international comparison between Southeast Asia and Latin America suggests that enterprises in Latin America face unfavorable conditions that discourage them from becoming more closely inserted into international production networks.


Research section: 
Latest Research
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