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GTAP Resource #3301

"Time as a Barrier to Trade: A GTAP Database of Ad Valorem Trade Time Costs"
by Minor, Peter and David Hummels

In recent years there has been increasing emphasis by the international trade community on non-tariff barriers as a significant factor limiting goods trade. Tariffs, subsidies and quotas, the most obvious factors limiting access to international markets are no longer assumed to be the most significant impediment to international goods trade. Regulations and procedures such as customs administration, inspections, trade financing, security issues and infrastructure including ports and roads can cause delays in shipping and are now considered amongst the most significant trade barriers limiting goods trade. Related to these non-tariff factors is the concept of good governance: the efficiency and transparency of processes, contract enforcement and administration. The inclusion of good governance as a topic in international trade analysis is a recognition that no matter how good a trade system looks on paper, or how low official tariffs may be, the system can contain hidden costs. These hidden costs can be direct or indirect. Direct costs of poor governance include bribes and un-official fees. Indirect costs include time delays and uncertainties in delivery resulting from poor administration and infrastructure. Recognizing the importance of non-tariff factors limiting trade, the World Bank Doing Business office has compiled a myriad of statistics and indicators to gauge the importance of these factors in a countries economy and trade.

Resource Details (Export Citation) GTAP Keywords
Category: 2010 Conference Paper
Status: Published
By/In: Presented at the 13th Annual Conference on Global Economic Analysis, Penang, Malaysia
Date: 2010
Created: Minor, P. (4/15/2010)
Updated: Batta, G. (2/7/2013)
Visits: 4,090
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