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The Effects of Transit Systems on International Trade

Carballo, Jerónimo; Graziano, Alejandro G.; Schaur, Georg; Martincus, Christian Volpe

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Authors

Jerónimo Carballo

Georg Schaur

Christian Volpe Martincus



Abstract

In this paper, we estimate the trade effects of a transit system upgrading that streamlines border processing in developing countries. Our empirical approach combines transaction level export data from El Salvador with unique data that distinguishes export flows that were processed on the transit system. Our results indicate that the new transit system lowered regulatory border costs and raised exports. At the low end, our back-of-the-envelope estimate of the return to investment is US$ 3-to-1. This evidence informs a policy covered by the 2013 WTO Agreement of Trade Facilitation.

Citation

Carballo, J., Graziano, A. G., Schaur, G., & Martincus, C. V. (2022). The Effects of Transit Systems on International Trade. Review of Economics and Statistics, 1-41. https://doi.org/10.1162/rest_a_01189

Journal Article Type Article
Acceptance Date Mar 3, 2022
Online Publication Date May 12, 2022
Publication Date May 12, 2022
Deposit Date Oct 13, 2022
Publicly Available Date Mar 29, 2024
Journal The Review of Economics and Statistics
Print ISSN 0034-6535
Electronic ISSN 1530-9142
Publisher MIT Press - Journals
Peer Reviewed Peer Reviewed
Pages 1-41
DOI https://doi.org/10.1162/rest_a_01189
Keywords Economics and Econometrics; Social Sciences (miscellaneous)
Public URL https://nottingham-repository.worktribe.com/output/12326143
Publisher URL https://direct.mit.edu/rest/article-abstract/doi/10.1162/rest_a_01189/111187/The-Effects-of-Transit-Systems-on-International?redirectedFrom=fulltext

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