Making small firms happy? The heterogeneous effect of trade facilitation measures

• DOI: 10.1111/roie.12463
• Publication Date: 2020-01-13T04:06:12Z
• Authors: Lionel Fontagné; Gianluca Orefice; Roberta Piermartini
• Keywords: Trade facilitation; Margin (machine learning); Facilitation; Affect

Abstract The different facets of trade facilitation may impact heterogeneously exporters size and productivity. Using the cross‐sectional variation in procedures at border, we identify how red tape affects through extensive and/or intensive margin show that small large are affected differently. We observe while information availability benefits both exporters, other measures like advance ruling, appeal automation border formalities tend to favor exporters. This result suggests policies affect channels than simply fixed or variable cost component barriers. Beyond affecting composition flows, uncertainty about conditions crossing borders plays an important role shaping demography across destinations.