Border and Behind-the-Border Trade Barriers and Country Exports

How do signatures required for exporting and business registration procedures affect the volume and composition of country's exports? To answer this question, I develop a model where a country can export two types of products: differentiated and homogeneous. I show that export signatures and re...

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Bibliographic Details
Main Author: Sadikov, Azim
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2007
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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300 |a 32 pages 
651 4 |a United States 
653 |a Tariffs 
653 |a Tariff 
653 |a International Trade Organizations 
653 |a Trade facilitation 
653 |a Public finance & taxation 
653 |a Trade Policy 
653 |a International trade & commerce 
653 |a Trade: General 
653 |a Exports and Imports 
653 |a International economics 
653 |a Investments: Commodities 
653 |a Commodities 
653 |a Exports 
653 |a International Economics 
653 |a Investment & securities 
653 |a Taxation 
653 |a Commercial products 
653 |a Imports 
653 |a Commodity Markets 
653 |a Customs administration 
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520 |a How do signatures required for exporting and business registration procedures affect the volume and composition of country's exports? To answer this question, I develop a model where a country can export two types of products: differentiated and homogeneous. I show that export signatures and registration procedures reduce overall exports by increasing transaction costs. The impact, however, varies across goods according to the product's degree of differentiation- the lack of price data on differentiated products due to their heterogeneity makes them more sensitive to export signatures. Regressions show that each extra signature exporters have to collect before a shipment can take place reduces aggregate exports by 4.2 percent. The impact is large, equivalent to raising importer's tariff by 5 percentage points. Furthermore, each signature lowers exports of differentiated products by 4-5 percent more than exports of homogeneous goods. I find evidence that business registration procedures affect exports of differentiated products only