Implementation in Pakistan of the US Integrated Cargo Container Control program: Trade‐facilitating or not?

Ali, Salamat; Kneller, Richard; Milner, Chris

Abstract

Using novel firm-level data, we examine the trade effect of the changed security arrangements for Pakistan's exports to the US following 9/11. The pre-shipment scanning facility introduced by the Integrated Cargo Container Control (IC3) program, following the 100% scanning requirement, affected the beyond-the-border and behind-the-border costs of exporting. We exploit the exogenous nature of this shock and its specificity to one export market in the identification strategy. The estimates show Pakistan's exports dropped by between 8% and 11% because of IC3 but that the effect was heterogeneous across firms depending upon their pre-IC3 port of departure and whether they switched following IC3. We also show that the export fall would have been even greater if 100% scanning had been introduced without a pre-shipment scanning facility.

Citation

Ali, S., Kneller, R., & Milner, C. (2021). Implementation in Pakistan of the US Integrated Cargo Container Control program: Trade‐facilitating or not?. Canadian Journal of Economics / Revue Canadienne d'Économique, 54(3), 1136-1167. https://doi.org/10.1111/caje.12533

• Journal Article Type: Article
• Acceptance Date: Apr 7, 2021
• Online Publication Date: Oct 20, 2021
• Publication Date: 2021-08
• Deposit Date: Aug 13, 2019
• Publicly Available Date: Aug 31, 2021
• Journal: Canadian Journal of Economics/Revue canadienne d'économique
• Print ISSN: 0008-4085
• Electronic ISSN: 1540-5982
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 54
• Issue: 3
• Pages: 1136-1167
• DOI: https://doi.org/10.1111/caje.12533
• Keywords: Trade Costs; Pre-shipment Scanning; Integrated Cargo Container Control; 9/11 and Trade; JEL Codes: F1; F13; F14
• Public URL: https://nottingham-repository.worktribe.com/output/2424397
• Publisher URL: https://onlinelibrary.wiley.com/doi/full/10.1111/caje.12533
• Additional Information: Published: 2021-10-20
• Contract Date: Aug 13, 2019