Academic Paper

The Effects of Transit Systems on International Trade

Carballo, J., Graziano, A.G., Schaur, J, Volpe, C.V; (2022) “The Effects of Transit Systems on International Trade”. The Review of Economics and Statistics

Published 20 July 2022

In this paper, the authors estimate the trade effects of a transit system upgrading that streamlines border processing in developing countries. The empirical approach combines transaction level export data from El Salvador with unique data that distinguishes export flows that were processed on the transit system. The results indicate that the new transit system lowered regulatory border costs and raised exports. This evidence informs a policy covered by the 2013 WTO Agreement of Trade Facilitation.

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Alejandro G. Graziano

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