The Impact Of Trade Facilitation On Export Performance

933 Words4 Pages
In the international trade environment, efficiency of an export-import activity previously was hampered by tariff or quotas restriction apply by the host or trade destination country. Such barrier in trade makes the cost of trade raise, while efficiency is declines. Nowadays, as the world entered a new era of globalization, most of the countries has becomes more integrated through free trade agreement. The agreement may eliminate barriers in trade, but not all of the costs were diminish by the freer market especially in developing countries. Trade facilitation has become a global concern in the last decade, the importance of reform and development in this area are considered to be substantial to increase efficiency and competitiveness of a country’s trade besides the reduction in the trade barriers. In the following section, the impact of trade facilitation to export performance is discussed from the elements of trade costs, overview of definition, measure and indicators use in trade facilitation, and is supported by various empirical studies. There are many definition and methodology in measure trade cost. In general approach trade costs can be measured as, the difference in values between the goods at the starting point it is exported and when its aimed the importing country after customs clearance, but not include the import duties (Sourdin and Pomfret, 2012). This transaction costs in trade also involved time of transport, infrastructure condition, and other factors
Get Access