TY  - JOUR
AU  - Hornok, Cecília
AU  - Koren, Miklós
TI  - Administrative barriers to trade
JF  - JOURNAL OF INTERNATIONAL ECONOMICS
J2  - J INT ECON
VL  - 96
PY  - 2015
IS  - S1
SP  - 110
EP  - 122
PG  - 13
SN  - 0022-1996
DO  - 10.1016/j.jinteco.2015.01.002
UR  - https://m2.mtmt.hu/api/publication/2956896
ID  - 2956896
AB  - We build a model of administrative barriers to trade to understand how they affect trade volumes, shipping decisions and welfare. Because administrative costs are incurred with every shipment, exporters have to decide how to break up total trade into individual shipments. Consumers value frequent shipments, because they enable them to consume close to their preferred dates. Hence per-shipment costs create a welfare loss.We derive a gravity equation in our model and show that administrative costs can be expressed as bilateral ad-valorem trade costs. We estimate the ad-valorem equivalent in Spanish shipment-level export data and find it to be large. A 50% reduction in per-shipment costs is equivalent to a 9 percentage point reduction in tariffs. Our model and estimates help explain why policy makers emphasize trade facilitation and why trade within customs unions is larger than trade within free trade areas. © 2015 The Authors.
LA  - English
DB  - MTMT
ER  -