Revisiting time as a trade barrier: Evidence from a panel structural gravity model

In this paper, we revisit the evidence on effects of time spent border-crossing procedures for international trade using a theory-consistent structural gravity model. We exploit rich panel dataset including domestic flows and employ recent econometric estimator that exhibits favorable asymptotic properties inference. The results indicate significant negative effect required border is driven by needed document preparation. find an additional day those corresponds to ad valorem tariff equivalent 0.4 percentage points. parameters our model are used simulate three counterfactual scenarios, quantifying past potential future facilitation efforts middle-, low-, high-income countries. Full endowment general equilibrium suggest in times stagnating multilateral bilateral liberalization efforts, unilateral implementation carries induce alternative stimulus welfare, especially low- middle-income