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.



Trade facilitation and poverty reduction: China-ASEAN region case study

Zhongying Sun (2009) applied a gravity model in his study of the role of trade facilitation; the results showed that the elasticities were different for the various trade facilitation measures. Port efficiency has positive effects in bilateral trade, both for importers and for exporters. Juanjuan Xie and Jing Yue (2011) made an empirical analysis of China-ASEAN trade using a gravity model. Junlan Shang and Ping Zhou (2012) also constructed a gravity model to analyse the impacts of trade facilitation on China-ASEAN trade, they also studied the impacts of trade facilitation on Chinese trade, and compared trade facilitation and tariff reductions; the results showed that trade facilitation could improve trade much more than tariff reductions. Lin Sun and Xufei Xu (2011) measured trade facilitation from port efficiency, customs environment, regulation and e-commerce. The results showed that the level of Chinese trade facilitation is near the world average, but among ASEAN countries there is a big gap. Singapore is much higher than average while Malaysia, Thailand and Brunei Darussalam are also near the world average. Viet Nam and Indonesia are lower than average.


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