Trade effects of trade facilitation revisited

This paper is the first to evaluate the effect of trade facilitation measures on bilateral exports considering intranational trade. The measures used are based on the United Nations Global Survey on Digital and Sustainable Trade Facilitation for 2015, 2017, and 2019. The methodology consists of estimating a structural gravity model that includes domestic sales in addition to international trade, which allows identification of country-specific trade facilitation effects, while fully accounting for multilateral resistances to trade and for globalization effects. The findings show a positive effect of trade facilitation measures on bilateral trade. The effects are heterogeneous and vary with the level of development of the exporters, generally being stronger for non-OECD countries.