EUROPEAN ACCESSION AND THE TRADE FACILITATION AGENDA
Abstract
This paper examines the impact of improved trade facilitation measures and institutional capacity in a set of economies in transition Europe. Our results suggest that behind-the-border barriers play an important role in determining bilateral trade flows (controlling for the effects of tariffs, development levels, distance, and regional characteristics of exporters and importers, among other factors). For European Union (EU) members that joined the Union in 2004 and less developed and candidate members raising capacity in port efficiency and information technology infrastructures halfway to the EU-15 average, trade could expand by US$49 billion and US$62 billion respectively. In the context of the economic crisis and fragile recovery, as well as efforts to strengthen Europe integration, efforts to facilitate trade with investments to raise capacity in trade facilitation should be considered as part of policy steps going forward.
We would like to thank Andreas Kopp (OECD), participants at an OECD-ECMT roundtable seminar, and numerous colleagues at the World Bank for helpful advice and suggestions on the paper. The findings, interpretations, and conclusions expressed in this article are entirely those of the author. They do not necessarily represent the view of the World Bank Group, its Executive Directors, or the countries they represent.
