Sept 28, 2021
Global Indicators Briefs No. 3
The Importance of Facilitating Imports for International
Trade Flows: Evidence from the Auto Industry
Viktoriya Ereshchenko, Varun Eknath, and Inés Zabalbeitia Múgica
I
mports are becoming more important than ever in world trade in the face of rapid globalization and the
spread of global supply chains. One way to boost imports is through e cient regulations and practices.
While the impact of regulatory restrictions is well established for exports, their e ect on imports has
been studied to a lesser extent across countries. is Brief aims to help ll that gap. Focusing on the auto
industry, it analyzes the relationship between e cient import procedures and international trade ows in
190 economies. An analysis of the data at the global level suggests that economies where importing auto parts
is relatively fast and inexpensive tend to have not only higher imports of auto parts (in terms of volume and
value) and a higher ratio of imports of auto parts to total GDP, but also a higher ratio of imports of overall
manufactured products to total GDP. Similarly, economies with e cient procedures when importing auto
parts tend to have a greater share of automobile exports of total GDP. e Brief does not provide a causal
interpretation and more analysis will be needed to understand the direction of the relationships. But given
the strong positive association between the e ciency of import procedures and international trade,
streamlining import regulations appears to be an important aspect for policy makers to focus on in
formulating trade policy.
E cient import regulations and practices can boost trade. import procedures and international trade ows. e Brief,
Full implementation of the World Trade Organization (WTO) however, does not provide a causal interpretation. More analysis
Trade Facilitation Agreement, which aims at cutting red tape will be needed to understand the direction of the relationship.
and simplifying export and import processes, could increase
world trade by 0.6 percent, the Organisation for Economic e Brief focuses on evidence from the auto industry,
Co-operation and Development (OECD) estimates (OECD which is often highlighted as an example of a global
2018). While exports have typically been highlighted in the manufacturing industry (Sturgeon, Biesebroeck, and Gere
literature on international trade regulations, and are often 2007). While export products vary across economies, countries
considered to be a crucial driver of a country’s economic tend to import similar products as a result of intra-industry
development (see, for example, Crivelli and Groeschl 2016; trade and well-developed supply chains (World Bank 2015).
Fontagné et al. 2015; Crozet, Milet, and Mirza 2016), imports
are no less important. As David Ricardo noted centuries ago in Why Are Efficient Import Regulations and
his theory of competitive advantage, imports have played a key Practices Important?
role in allowing countries to fully exploit their comparative Imports are becoming ever more important in world trade
advantage and focus their e orts on the sectors where in the face of rapid globalization and the spread of global supply
production is the most e cient and competitive. chains. Readily available imported products allow domestic
While the impact of regulatory restrictions is well enterprises to have access to a wide range of goods of better
established for exports (see, for example, Crivelli and Groeschl quality at a competitive price. Moreover, larger volumes, more
2016), their e ect on imports has been studied to a lesser extent. variety, and higher quality of imported products are associated
Several studies analyze the relationship between import with higher volumes and quality of exports, increased economic
regulations and the value of imports for speci c countries growth rates, and more diversi cation of export markets
(Pierola et al. 2018; Fernandes, Hillberry, and Mendoza (Pierola et al. 2018).
Alcantara 2015; Soloaga, Wilson, and Mejia 2006). However, Imports can also be an important channel for technology
there is less cross-country evidence on such relationships. transfer to the importing country (Almeida and Fernandes
Burdensome trade procedures are associated with increased time 2008). In addition, technology transfers can lead to the
and cost to import, as measured by the World Bank’s annual di usion of new technologies across di erent industries in the
reports on Doing Business. e objective of this Global importing country (technological spillovers) (Keller 2002).
Indicators Brief is to analyze the relationship between e cient Overall, imports of technology and associated gains in
Affiliations: World Bank, Global Indicators Group, Development Economics. For correspondence: veknath@worldbank.org; vereshchenko@worldbank.org;
izabalbeitiamugi@worldbank.org.
Acknowledgements: We are grateful to Ana Margarida Fernandes, David C. Francis, William John Gain, Ankur Huria, Norman V. Loayza, Valeria Perotti and Rita Ramalho
for helpful comments. Nancy Morrison provided excellent editorial assistance.
Objective and disclaimer: Global Indicators Briefs synthesize existing research and data to shed light on a useful and interesting question for policy debate. Global
Indicators Briefs carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions are entirely those of the authors. They
do not necessarily represent the views of the World Bank Group, its Executive Directors, or the governments they represent.
DECIG – Global Indicators Briefs No. 3
productivity are considered to be an important channel by be the case when governments introduce NTMs to address
which international trade leads to economic growth (Wacziarg amarket failure but do not remove them after the problem is
and Welch 2008). resolved.
E cient import regulations are crucial to ensure the NTMs are a major obstacle for small and medium
smooth functioning of the international trade system, as enterprises when trading across borders (WTO 2016),
documented by a number of studies around the world. e restricting imports and reducing the probability of exporting
implementation of advanced customs clearance procedures is
(Crivelli and Groeschl 2016; Devadason, Chandran, and
associated with a greater total value and diversi cation of
Kalirajan 2018; El-Enaby, Hendy, and Zaki 2016). NTMs
imports in Peru (Pierola et al. 2018). Evidence from Albania
suggests that a reduction in customs processing time, linked to may generate additional costs for producers and traders, which
the introduction of a risk-management inspection system, leads can increase prices (UNESCAP 2019). For instance, the
to increased import values (Fernandes, Hillberry, and Mendoza introduction of NTMs in the apparel sector increased prices by
Alcantara 2015). Another study on the impact of trade 66 percent in the European Union, and the introduction of
facilitation measures in Mexico shows that import reforms NTMs on vegetable oils and fats in South Africa increased
could generate an increase of about 11 percent in the value of prices by 90 percent (Andriamananjara et al. 2004). In turn,
imports, with the largest gains coming from improved e ciency NTMs can increase the cost of living. A study on 65 countries
of ports (Soloaga, Wilson, and Mejia 2006). found that the introduction of NTMs raised trade unit values,
with prices rising an average of about 8 percent in half the
e Increased Importance of Non-Tari Measures as products assessed (Cadot and Gourdon 2016). Further, an
Barriers to Imports analysis of Malaysia’s NTMs on food imports from neighboring
countries in the Association of Southest Asian Nations con rms
Despite their importance, import ows continue to face that technical standards restrict imports (Devadason,
hurdles. As import tari levels have been falling, the role of Chandran, and Kalirajan 2018).
non-tari measures (NTMs) has been growing (EDB 2015).
NTMs today have a bigger in uence on trade than tari s, and Non-tari barriers (NTBs) are a subset of NTMs that have
their variety makes them much harder to measure (UNCTAD a protectionist or discriminatory intent that restrict trade
and World Bank 2018). Governments impose NTMs to meet (International Trade Center). NTBs involve additional
an array of public policy goals such as addressing public health compliance measures that may discourage exporters from
externalities, improving consumer protection, or enhancing entering the market of the country imposing such standards,
national security (Ronen 2017). While an NTM may be the therefore curtailing imports. NTBs include technical barriers to
best solution to achieve a legitimate public policy goal, the same trade; preshipment and conformity inspections; nonautomatic
measure may also be used for protectionist purposes or may lead licensing; quotas and other quantitative controls; and price
to unnecessary trade costs (WTO 2012). For instance, this can control.
Figure 1 The Relationship between the Efficiency of Import Procedures and Trade Flows
Economies with more e cient import procedures have greater values and volume of imports.
a. Value of trade b. Volume of trade DEU
20
Logarithm of volume of HS8708 imports (2018)
15
MEX CHN FRA ESP
Logarithm of HS8708 value imports (2018)
GBR
CZE
y = 0.0342x + 7.6006 RUS SVK
POL
y = 0.0464x + 8.2866 USA JPN SWE
BEL
R² = 0.1454 DEU R² = 0.0949 ARE BRA THA NLD
TUR
MEX CHN AUT
ROM
CANGBR
ESP
FRA ARG IDN IND MYS PRT
CZE
SVK KOR
RUS JPN ITA
POL
BEL
SWE FIN
BRA THA ROM
IND
NLD
AUT
TUR
HUN PHL
ZAF
TWN SVN
MAR
15 ARG IDN
ARE AUS MYS PRT
KOR DZA UZB SAU SRB
VNM SGP FIN EGY NGA IRNCOL DNK
KAZ
ZAF TWN SVN MMR UKR CHE
NOR
DZA UZB SAU MAR
CHL HKG CHE
DNK
NOR CHL LUX
LTU
EGY IRNCOL SRB SYR LBN GHA PER ECU IRL GRC
PHL BLR
GRC SDN KEN TUN JOR ISR NZL HKG
AFG IRQ PAK UKR IRL
NZL
OMN LTU AFG LVA
BGR
LBNKWT PER
TUNECU ISR PAN KAZ
BGR
LVA
LUX
HRV 10 KWT KGZ BOL
URY
GTM BIH
HRV
BGD MMR QAT URY
LBY LKA BHRGTM EST ZAR TZA AGO SEN
ETH UGA
MRT QAT HND CRI PRY AZE SLV
SDN KEN ZMB KHM
JOR PRY
CRI DOM MKD
BIH
NAM TJK ZMB MNG BHR NPL
NGA SYR AGO PNG HND BOL AZE
NPLSLV
CYP BWA SOM CIV GEO MKD
ZARTZA ETH GHA KGZ LAO ISL
MOZ MDA BFA
MDG RWA ARM
BWA
MDA
CMR TTO
ZWE CIV JAM MNG NIC
GEO MLT ZWEDJI JAM NIC CYP
10 TGO GABGIN
SEN
SOM
BHS DJI TJK BFA
UGA MLI MUS ALB
ARM
COG
GNQ
LBR MRT MDG
BRB GUY HTI RWA FJI MNE
BRN SWZ
LSO
SSD GUY SURMUS ISLLSO
CAF SUR
MWI WBG GMB MLT
SWZ
TCD SLB BLZ
SYC BEN
SSD
BDI SLE NER BEN TMP BTN BDI
BHS
BRB SLB BRN SYC MWI MNE
MDV CPV
ATG VCT FSM NER
VUT LCA
DMA SLE BLZ WBG
WSMGRDCOM KNA CPV BTN
CAF VCT
GMB
MHL ATG
TON MDV
5 5
0 20 40 60 80 100 0 20 40 60 80 100
Trading across borders-import components score (0-100) Trading across borders-import components score (0-100)
Source: Doing Business 2020; ITC Trade Maps 2018.
Note: The sample includes 180 observations for panel a and 135 observations for panel b. The figures use country codes from Doing Business.
Further regressions for panel a and panel b highlight that the relationships are significant at the 1 percent level and remain significant after controlling for
income level, population, and tariff rates for HS8708 (auto parts and other vehicle parts). A further check on robustness added controls on natural resource
endowment and share of value added of manufacturing sector of total GDP; the results remain significant at the 1 percent level. After adding the respective
controls, the sample reduces to 106 observations for both panels. Data for the following are from the World Development Indicators database (2018): (1)
gross national income (GNI) per capita, a proxy for income level; (2) exports of fuel as a share of merchandize exports (2018), a proxy of natural resources
endowment; (3) value added of manufacturing sector as a share of GDP (2018); and (4) on population size (2018). As a proxy for tariff levels, data on the
tariff level from the HS of Tariffs for HS 8708 (auto parts and other vehicle parts) are taken from ITC Trade Maps from 2018.
2
DECIG – Global Indicators Briefs No. 3
How Are Efficient Import Regulations and In the Slovak Republic, which ranks rst on the ease of
Practices Related to Trade? trading across borders in 2018/19, imports of auto parts
represent 10 percent of total GDP. e Slovak Republic
e Trading across Borders import data serve as a proxy for imports auto parts mostly from Germany, and no border
the e ciency of import regulations and practices in an control nor customs requirements are applicable because both
economy. us, this measure is used as the main independent countries belong to the European Union. On the other hand,
variable for the analysis.1 Data from the International Trade economies with cumbersome import regulations, such as
Center (ITC) are used to identify the main dependent variables. Cameroon and Tanzania, have smaller ratios of imports of auto
Speci cally, the Brief relies on the value and volume of imports
parts to total GDP. Cameroon and Tanzania require
of auto parts as reported by the relevant category in the
conformity inspections at origin when importing auto parts,
Harmonized Schedule (HS) of Tari s, (HS8708). Further, the
which adds to the time and cost to trade.
value of imports of auto parts and the value of exported vehicles
(HS87) are used to construct variables on the share of imports e recent fragmentation of production processes has been
of auto parts and the share of exports of vehicles of total GDP. accompanied by a rise in the trade of intermediate goods. While
Not surprisingly, an analysis of the data at the global level world exports increased almost six-fold from 1990 to 2018
suggests that economies with more e cient import procedures (from US$4.3 trillion to US$25.129), GDP has grown more
have higher levels of imports, in terms of both volume ( gure slowly, by nearly four-fold, from US$22.656 trillion to
1, panel a) and value ( gure 1, panel b). US$85.91 trillion (World Bank World Development Indicators
Furthermore, economies with better performance on the database). e higher growth of exports can be explained by the
import component of the Trading across Borders indicator tend increasing trade in intermediate goods that are exported several
to have a higher ratio of imports of auto parts to total GDP. In times before being turned into a nal product (Nordås 2003).
particular, economies in which it is relatively fast and
inexpensive to import auto parts tend to import more auto parts Countries’ exports increasingly embody value added that is
( gure 2 and table 1). e relationship is notably signi cant previously imported through global value chains. us, import
when it comes to time and cost to import (time at a 1 percent policies have become an important determinant for further
level and cost at a 5 percent level). More e cient import exports, as noted in the 2020 World Development Report (World
procedures are also associated with higher ratio of imports of Bank 2020). Factors such as import tari s on intermediate
manufactured products to total GDP in general, even after goods and raw materials, are important for exports (Fernandes,
taking several relevant controls into account. While this Kee, and Winkler 2020; Ali and Dadush 2011). With the
illustrates an association between e cient import procedures decline in tari barriers, the signi cance of non-tari measures
and imports, further research is needed to understand the on imports, such as border and documentary requirements, is
direction of such a relationship. even more pronounced for the export of nal products.
Economies where importing auto parts is relatively fast and inexpensive tend to have a greater
Figure 2 ratio of imports of auto parts to GDP.
-2
Logarithm of HS8708 imports in total share of GDP (2018)
SVK
y = 0.0205x - 7.4118 CZE
HUN
R² = 0.2054
MEX SVN
-4 AFG UZB ROM
THA SRB POL
BEL
PRT
AUT
CAN SWE
ESP
DEU
MAR
VNM
TUN MKD TUR BLR
FIN
LVA
NLD
DJI ARE MYS LTU
NAM GBR FRA
EST
ARG
DZA SOM SLB KGZ RUS
KHM FSM SGPLSO BIH
TGO LBN ZAF SYC OMN SWZ MDA ITA
BGR
EGY LBR IDN DMA BHR
BLZ PAN USA BWA LUXHRV
CAF PNGZMB
GUYHND FJI
CHL
VCT BRAUKRMOZSLV
TJK LBY MHL DNK
-6 SDN GIN BRB MRT
MMR VUT URY
COL BOL
JOR
MNG PRY GEO
ECU
SURNIC
LAO MNE
NPL
CYP
CHNHKG KOR MLT GRC
JAM BFA NOR
COG IRQ
BHS
KWT PHL
WSM TMP
ATG
RWAGTM
MUS JPN
IND NZL ISL BTNCHEKAZ
ARM
ALB
TTO PER HTI CPV
LKA CRI AUSAZE
BDI GAB ZWE COM
SAU MWI KNA
ZAR SLE SENKEN MLI
PAK
GRD
MDG BRN LCA TON DOM IRL
CMR
TZA GNQ ISR
CIV
UGA GHA QAT
ETH
AGO NER
TCD BGD MDV
BEN GMB WBG
-8
NGA
-10
0 10 20 30 40 50 60 70 80 90 100
Trading across borders-import components score (0-100)
Source: Doing Business 2020; World Development Indicators database; ITC Trade Maps 2018.
Note: The sample includes 176 observations. The figure uses country codes from Doing Business.
A futher regression highlights that the relationship is significant at the 1 percent level and remains significant after controlling for income level, population,
and tariff rates for HS8708 (auto parts and other vehicle parts). A further check on robustness added controls on natural resource endowment and share of
value added of manufacturing sector of total GDP; the results remain significant at the 1 percent level. After adding the respective controls, the sample
reduces to 106 observations.
3
DECIG – Global Indicators Briefs No. 3
Table 1 The Relationship between the Efficiency of Import Procedures and Imports of Auto Parts
Ratio HS8708 imports Ratio HS8708 imports Ratio HS8708 imports
total GDP total GDP total GDP
Trading Across Borders Import Score 0.2935*** 0.2639*** 0.1814**
(2019) (0.005) (0.009) (0.014)
Log GNIpc (2018) 0.0161 0.0303
(0.645) (0.427)
Tari rates for HS8708 (2018) -0.0060 -0.0060
(0.240) (0.241)
Share manufacturing total GDP (2018) 0.0367**
(0.028)
Share Fuel merchandise exports (2018) -0.0042*
(0.068)
Constant -3.94e-09 (1.0) -0.1086 -0.6367
(0.753) (0.109)
Number of observations 106 106 106
Adjusted R-sq. 0.077 0.062 0.109
p-values in parenthesis
* p<0.1, ** p<0.05, *** p<0.01
Source: Doing Business 2020; World Development Indicators database; ITC Trade Maps 2018.
Note: The sample includes 106 observations. Using standardized variables for the “ratio of imports of HS8708 to GDP” and “Trading Across
Borders Import Score” variables in the model, the regression analysis shows that the relationship is significant at the 1 percent level and remains
significant after controlling for income level and tariff rates for HS8708 (auto parts and other vehicle parts). A further check on robustness added
controls on natural resource endowment and share of value added of manufacturing sector of total GDP; the results remain significant at the 5
percent level.
A cross-country analysis suggests that economies with for imports of auto parts and has a smaller share of exports of
better regulations and practices when importing auto parts tend vehicles of GDP. Incoming auto parts are inspected by several
to have higher shares of exports of vehicles (HS87) of total GDP control agencies, including the Algerian Competition and Price
(table 2). While this relationship is signi cant across income Department, the Ministry of Commerce, and Customs. Over
groups, the association is more pronounced for high-income the past few years, Algeria has been trying to streamline import
and upper-middle income economies ( gure 3). is analysis control. In 2017, the government introduced “mixed brigades”
demonstrates an association between e cient import processes with o cers from the di erent agencies to conduct inspections
and exports, although further research is needed to establish in a coordinated manner.
causality.
Within the group of low-income and lower-middle-income
Among the group of upper-middle and high-income economies, Morocco’s e cient practices when importing auto
economies, the Czech Republic is one of the best performers on parts are associated with a large share of exports of vehicles of
the ease of trading across borders and one of the countries with total GDP. For instance, according to the Trading across
the highest share of exports of vehicles of total GDP (0.016 Borders data, port handling is relatively fast and inexpensive at
percent). Likewise, Canada has e cient import regulations, and Morocco’s gate to (and from) the European Union,
is also one of the largest exporters of vehicles globally. Canada Tanger-Med port. While technical inspection by the Ministry
imports auto parts mostly from the United States. e United of Commerce and Industry is required when importing auto
States and Canada are part of a free trade area and physical or parts into Morocco, physical inspections by Customs are rare.
scanning inspections are rare. Customs procedures are followed On the other hand, Ethiopia has a small share of exports of
only on the Canadian side of the border, where the Canada vehicles of total GDP. While many factors a ect a country’s
Border Services Agency accepts either a commercial invoice or a ability to export vehicles, there is room for improvement in
Canada Customs Invoice for clearance purposes.
Ethiopia when it comes to the ease of importing auto parts. In
Among upper-middle-income economies, ailand’s addition to regular commercial and transport documents,
e cient practices in importing auto parts go hand in hand with Ethiopian importers must obtain a permit from a commercial
a signi cant share of exports of vehicles of total GDP (0.006 bank, an import license from the Ministry of Trade, and an
percent). ailand’s traders prepare and submit import insurance certi cate. Imported auto parts are physically
documentation electronically and free of charge. On the other inspected by Customs in more than 20 percent of cases and it
hand, Algeria provides a relatively more di cult environment takes an average of 72 hours to complete clearance.
4
DECIG – Global Indicators Briefs No. 3
Figure 3 The Relationship between Efficiency of Import Procedures for Auto Parts and Exports of Vehicles
Economies with more e cient procedures when importing auto parts tend to have a greater share
of exports of vehicles of total GDP.
a. Low- and lower-middle-income economies b. Upper-middle and high-income economies
-10 -6
MAR
y = 0.0267x - 16.397 y = 0.0896x - 20.238
Logarithm of share of HS87 exports in total
Logarithm of share of HS87 exports in total
KHM
TUN R² = 0.3691
R² = 0.0718 VNM
IDN -8
-12 CAF SLE
NER KGZ IND SVK
CZE
TGO HUN
PHL MEX SVN
BEL
SOM TJK HND FSM MDA
SWZ THA ROM DEU
UGA RWA -10 KOR TUR
CAN
POL
BLR
AUT
SWE
PRT
ESP
LBR KEN UZB ZMB
DJI UKR ARE
ZAF JPN MKD EST
LTU
NLD
-14 SEN CIV BFA STP NIC BTN
GEO-10.58797741
SRB, LVA
ITA
FIN
FRA
GBR
LUX
TZA EGY MWI MOZ LSO
SLV ARG BGR
HRV
BDI NPL BHR SGP BIH
GIN BEN DNK
NAM
GDP (2018)
GDP (2018)
COG AFG
BGD
MMR HTI -12 KWT BRA CHN
MYSUSA
MLI MNG LAO LBN HKG CHE
SLB PAK URY
JORMHL CHL MNE BWA
-16 ZWE MDG QAT
GRDCOL
SAUATGRUSVCT OMN
NOR
ARM
CMR
ZAR AGO ALB
KIR
GNB IRL
GHA PNG
VUT -14 DMA
LKA BLZ AUS FJI
GTM PAN CYP GRC
TON NZL
GMB
TMP BHS
GAB
BRB PER SYCISR MLT
ETH GNQ TTO LCAECU KAZ
-18 SDN
WSM
PLW
GUY BRN CRI DOM ISL
MUS
-16 SUR
AZE
JAM PRY
WBG KNA
DZA
-20 COM -18 LBY
TCD
IRQ
NGA
-22 -20
0 20 40 60 80 100 20 40 60 80 100
- (0-100)
Trading across borders- import components score Trading across borders- import components score (0-100)
Source: Doing Business 2020; World Development Indicators database; ITC Trade Maps 2018.
Note: The initial sample of observations includes 72 low-income and lower-middle income economies, and 106 upper-middle and high-income
economies. The figures use country codes from Doing Business.
Results of further regression analysis using a standardized variable for the “share of HS87 exports of total GDP” and “Trading Across Borders Import Score,”
that the positive relationship is significant at the 10 percent level for panel a and at the 1 percent level for panel b. After controlling for income level, import
tariff rates for HS8708 (auto parts and other vehicle parts), and the value added of manufacturing sector of total GDP, the results remain significant at the 10
percent and 1 percent level, respectively. After adding the controls, the sample reduces to 51 observations for panel a and 95 observations for panel b. HS87
= Harmonized Schedule of Tariffs for motor vehicles.
Relationship between Share of Exports of Vehicles in GDP and Efficiency of Trade Procedures when
Table 2 Importing Auto Parts
Share HS87 exports Share HS87 exports Share HS87 exports
total GDP total GDP total GDP
Trading Across Borders Import Score 0.3745*** 0.3090*** 0.2078***
(2019) (0.000) (0.002) (0.007)
Log GNIpc (2018) 0.0509 0.0655
(0.252) (0.167)
Tari rates for HS8708 (2018) -0.0114 -0.0135**
(0.111) (0.040)
Share manufacturing total GDP (2018) 0.0431
(0.017)
Share Fuel merchandise exports (2018) -0.0056
(0.042)
Constant -0.001(0.991) -0.3956 -0.9771**
(0.352) (0.041)
Number of observations 105 105 105
Adjusted R-sq. 0.132 0.127 0.204
p-values in parenthesis
* p<0.1, ** p<0.05, *** p<0.01
Source: Doing Business 2020; World Development Indicators database; ITC Trade Maps 2018.
Note: Using a standardized variable for the “share of export of HS87 of total GDP” and “Trading across Borders Import Score” variables in the
model, the results show a positive relationship significant at the 1 percent level, and remains so after controlling for income, share of fuel in
merchandize exports, import tariffs on HS8708, and value added of manufacturing sector of total GDP. HS87 = Harmonized Schedule of Tariffs
for motor vehicles.; HS8708 = Harmonized Schedule of Tariffs for auto parts and other vehicle parts.
5
DECIG – Global Indicators Briefs No. 3
e Trading across Borders data can be used as a proxy Conclusion
not only of the auto industry, but also of the overall e ciency of
import processes in an economy. Countries with burdensome e importance of imports in terms of economic
development has been somewhat overshadowed by the research
practices on imports of auto parts tend to apply same onerous about exports. While this Brief illustrates an association
procedures to imports in other industries. For example, e between e cient import procedures and trade ows, further
Bahamas requires a license for importing from the United research is needed to understand the direction of such
Kingdom. is measure is applied to a wide range of products, arelationship. Given the strong positive association between the
including but not limited to auto parts (UNCTAD, TRAINS e ciency of import procedures and international trade,
database). Given the importance of global value chains, streamlining import regulations appears to be an important
countries with streamlined import regulations can secure aspect for policy makers to focus on when formulating trade
e cient access to inputs that can be later used for domestic policy.
production and exporting. Although more analysis is needed to
Notes
establish causality, there is also a signi cantly positive
relationship between the e ciency of regulations and practices 1 e scores on import components of the Trading across
when importing auto parts, and the overall share of exports in Borders indicator account for the correction of the
GDP across all sectors, even after adjusting for relevant controls. irregularities of the Doing Business 2020 report.
https://thedocs.worldbank.org/en/doc/791761608145561083-0050022020/original/DBDataIrregularitiesReviewDec2020.pdf
References
Ali, S., and U. Dadush. 2011. “Trade in Intermediates and Economic Keller, W. 2002. “Trade and the Transmission of Technology.”
Policy.” VOX EU, February 9, Center for Economic and Policy Journal of Economic Growth 7: 5–24.
Research.
Nordås, K. V. 2003. “Fragmented Production: Regionalization of
Almeida, R., and A. M. Fernandes. 2008. “Openness and Trade?” WTO Sta Working Paper No. ERSD-2003-01, World
Technological Innovations in Developing Countries: Evidence from Trade Organization, Geneva.
Firm-level Surveys.” Journal of Development Studies 44 (5): 701–27.
OECD (Organisation for Economic Co-operation and Development).
Andriamananjara, S., J. Dean, R. Feinberg, M. Ferrantino, R. Ludema 2018. Trade Facilitation and the Global Economy. Geneva: OECD.
and M. Tsigas. 2004. “ e E ects of Non-Tari Measures on
Pierola, M., M. Denisse, A. M. Fernandes, and T. Farole. 2018. “ e
Prices, Trade, and Welfare: CGE Implementation of Policy-based
Role of Imports for Exporter Performance in Peru.” e World
Price Comparisons.” O ce of Economics Working Paper, U.S.
Economy 41 (2): 550–72.
International Trade Commission, Washington, DC.
Ronen, E. 2017. “Quantifying the Trade E ects of NTMs: A Review
Cadot, O., and J. Gourdon. 2016. “Non-tari Measures, Preferential
of the Empirical Literature.” Journal of Economics and Political
Trade Agreements, and Prices: New Evidence.” Review of World
Economy 4 (3): 263–74.
Economics 152 (2): 227–49.
Soloaga, I., J. S. Wilson, and A. Mejía. 2006. “Moving Forward Faster:
Crivelli, P., and J. Groeschl. 2016. “ e Impact of Sanitary and Trade Facilitation Reform and Mexican Competitiveness.” World
Phytosanitary Measures on Market Entry and Trade Flows.” e Bank Working Paper 3953, World Bank, Washington, DC.
World Economy 39 (3): 444–73.
Sturgeon, T., J. Biesebroeck, and G. Gere . 2007. “Prospects for
Crozet, M., E. Milet, and D. Mirza. 2016. “ e Impact of Domestic Canada in the NAFTA Automotive Industry: A Global Value
Regulations on International Trade in Services: Evidence from Chain Analysis.”
Firm-level Data.” Journal of Comparative Economics 44: 585–607. https://gvcc.duke.edu/wp-content/uploads/Industry-Canada-
https://gvcc.duke.edu/wp-content/uploads/Industry-Canada-auto-GVC_final-draft_03-14-07.pdf
Devadason, E., V. G. R. Chandran, and K. Kalirajan. 2018. auto-GVC_ nal-draft_03-14-07.pdf
https://gvcc.duke.edu/wp-content/uploads/Industry-Canada-auto-GVC_final-draft_03-14-07.pdf
“Harmonization of Food Trade Standards and Regulations in UNCTAD (United Nations Conference for Trade and Development)
ASEAN: e Case of Malaysia's Food Imports.” Agricultural and Word Bank. 2018. e Unseen Impact of Non-Tari Measures:
Economics 49 (1):97–109. Insights from a New Database. Geneva: UNCTAD.
EDB (Eurasian Development Bank). 2015. “Estimating the Economic UNESCAP (United National Economic and Social Commission for
E ects of Reducing Non-Tari Barriers in the EEU.” Saint Asia and the Paci c). 2019. Asia-Paci c Trade and Investment Report
Petersburg: Eurasian Development Bank. 2019. Bangkok: UNESCAP.
El-Enbaby, H., R. Hendy, and C. Zaki. 2016 “Do SPS Measures Wacziarg, R., and K. H. Welch. 2008. “Trade Liberalization and
Matter for Margins of Trade? Evidence from Firm-level Data.” Growth: New Evidence.” e World Bank Economic Review 22 (2):
Applied Economics 48 (21): 1949–64. 187–231.
Fernandes, A. M., R. Hillberry, and A. Mendoza Alcantara. 2015. World Bank. 2015. Doing Business 2016. Washington, DC: World Bank
“Trade E ects of Customs Reform: Evidence from Albania.” Policy
Research Working Paper 7210, World Bank, Washington, DC. ———. 2018. World Development Indicators (WDI) Online
database. Washington, DC: World Bank.
Fernandes, A., H. L. Kee, and D. Winkler. 2020. “Determinants of
Global Value Chain Participation.” Policy Research Working Paper ———. 2019. Doing Business 2020. Washington, DC: World Bank.
9197, World Bank, Washington, DC. ———. 2020. World Development Report 2020: Trading for
Fontagne, L., G. Ore ce, R. Piermartini, and N. Rocha. 2015. Development in the Age of Global Value Chains. Washington, DC:
“Product Standards and Margins of Trade: Firm-level Evidence.” World Bank.
Journal of International Economics 97 (1): 29–44. WTO (World Trade Organization). 2012. World Trade Report 2012:
ITC (International Trade Center). “Understanding Non-Tari Trade and Public Policy: A Closer Look at Non-Tari Measures in the
Measures.” 21st Century. Geneva: WTO.
https://ntmsurvey.intracen.org/support-materials/understanding-
https://ntmsurvey.intracen.org/support-materials/understanding-ntms/. ———. 2016. World Trade Report 2016: Levelling the Trading Field for
ntms/. SMEs. Geneva: WTO.