The impact of trade costs on exports: An empirical modeling

Imran Ullah Khan, Kaliappa Kalirajan

    Research output: Contribution to journalArticle

    Abstract

    Studies, which have discussed some of the important issues concerning the measurement of trade costs, have conceded that the literature is still in the early stages of understanding and measuring what the real costs are. It is in this context, decomposing trade costs into 'natural' costs, 'behind the border' costs, 'explicit beyond the border' costs, and 'implicit beyond the border' costs, this paper suggests a method to measure the impacts of these components on changes in exports between countries in the absence of complete information on all the components of trade costs in home and partner countries. Empirical measurement has been demonstrated using 1999 and 2004 trade data from Pakistan. The results show that Pakistan's export growth between 1999 and 2004 came mainly from the reduction in both 'explicit and implicit beyond the border' trade costs in partner countries.
    Original languageEnglish
    Pages (from-to)1341-1347
    JournalEconomic Modelling
    Volume28
    Issue number3
    DOIs
    Publication statusPublished - 2011

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