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

Related Subject(s): Economic and Social Development