Impacts of trade facilitation measures on poverty and inclusive growth

Case studies from Asia

image of Impacts of trade facilitation measures on poverty and inclusive growth
Trade and investment are growth engines in Asia and the Pacific enabling them to significantly reduce poverty during the past two decades. However, performance would improve if high tariff and non-tariff barriers issues were addressed; non-tariff trade costs alone account for over 90% of overall trade costs. With some of the world’s most dynamic economies located in the region, the potential for expansion of intraregional trade and investment in Asia and the Pacific exists, making the whole region more resilient to external shocks. Unfortunately, many barriers prevent intraregional movement of goods and investment, affecting in particular the opportunities for small and medium-sized enterprises (SMEs) to directly participate in international trade. Removal of those barriers and deepening regional connectivity can therefore be a strong driver of growth and poverty reduction. While sufficient literature exists with regard to establishing a direct and positive correlation between trade and poverty reduction, very few studies have been undertake. This book addresses that gap and features a compilation of specific case studies exploring the link between a number of trade facilitation measures and poverty reduction.



Ongoing trade facilitation improvement: Its impact on export-oriented small and medium-sized enterprises in Indonesia

The study described in this chapter examines the effect of trade facilitation measures on export-oriented micro, small and medium-sized enterprises (MSMEs) in Indonesia. While trade facilitation frequently refers to all measures that can be taken to facilitate cross-border trade flows, there is no standard formal definition of trade facilitation. In a broader sense of the term, as stated in Damuri (2006), trade facilitation can be defined as any action that is intended to reduce transaction costs that affect the international movement of goods, services, investments and people. Trade facilitation also refers to policies and measures aimed at easing trade costs by improving efficiency at each stage of the international trade chain (e.g., Moïsé and others, 2011). The coverage of trade facilitation may include aspects such as trade procedures, trade finance, market information, customs, regulatory bodies, provisions for official control procedures applicable to import, export and transit provisions related to transport and transport equipment, provisions related to the use of information and communication technologies, logistics and infrastructure, among others. The study poses two main research questions


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