Need for Speed: Is Faster Trade in the EU Trade-Creating?
By: Hornok, Cecília.
Material type: BookSeries: wiiw Working Papers: 75Publisher: Wien : Wiener Institut für Internationale Wirtschaftsvergleiche (wiiw), 2011Description: 38 S., 20 Tables and 6 Figures, 30cm.Subject(s): time cost of trade | difference-in-difference-in-differences estimation | treatment intensity | EU enlargement | transport mode choiceCountries covered: European Unionwiiw Research Areas: International Trade, Competitiveness and FDIClassification: F13 | F14 | F15 Online resources: Click here to access online Summary: Timeliness has gained growing importance in international trade. This paper provides empirical evidence on the significant cost of time in trade by exploiting the quasi-experimental nature of the European Union (EU) enlargement in 2004. It applies a difference-in-difference-in-differences econometric strategy on a European industry-level database of bilateral trade barriers, where industries are differentiated according to their time sensitivity. The use of a treatment intensity indicator that captures the decline in the waiting time at borders supports the identification. Results are cross-checked on subsamples defined along transport mode choice probabilities, where intra-EU transport mode choice projections are obtained from an estimated discrete choice model on extra-EU trade. Robustness checks experiment with alternative definitions of treatment sensitivity and treatment intensity.Item type | Current library | Call number | Status | Date due | Barcode | |
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Paper | WIIW Library | 5.700/75 (Browse shelf(Opens below)) | Available | 1000010000555 |
Timeliness has gained growing importance in international trade. This paper provides empirical evidence on the significant cost of time in trade by exploiting the quasi-experimental nature of the European Union (EU) enlargement in 2004. It applies a difference-in-difference-in-differences econometric strategy on a European industry-level database of bilateral trade barriers, where industries are differentiated according to their time sensitivity. The use of a treatment intensity indicator that captures the decline in the waiting time at borders supports the identification. Results are cross-checked on subsamples defined along transport mode choice probabilities, where intra-EU transport mode choice projections are obtained from an estimated discrete choice model on extra-EU trade. Robustness checks experiment with alternative definitions of treatment sensitivity and treatment intensity.