This paper analyzed the impact of trade facilitation dimensions including border transport efficiency, logistics and transport infrastructure, customs environment, and information and communication technology infrastructure on the APEC’s exports of ...
This paper analyzed the impact of trade facilitation dimensions including border transport efficiency, logistics and transport infrastructure, customs environment, and information and communication technology infrastructure on the APEC’s exports of three product groups such as all products, homogeneous products and differentiated products, of which the attributes are qualitatively different. Estimations were made by using the cross - sectional data of bilateral trade between APEC and its partner countries and applying the gravity model. The empirical results show that all of the trade facilitation variables have a significant impact on the three product groups, of which the estimated coefficients have the expected sign except the effects of exporting clearance time on homogeneous products. The effects of those variables on exports are found to be differential between homogeneous and differentiated products. That is, among the variables of trade facilitation exporting clearance time, logistics and transport infrastructure, and information and communication technology infrastructure have stronger effects on the exports of differentiated products, while importing clearance time has stronger effects on the export of homogeneous products. The simulation analysis illustrates that export gain would be remarkable if all of the trade facilitation factors are improved except the importing clearance time. In APEC countries except Chile and Peru those factors have the effects to bring in larger export gain on differentiated products than homogeneous products. Chile and Peru have the highest export gain from homogeneous products.