The Time Cost of Documents to Trade
This paper analyzes the relationship between the number of documents required to export and import and the time it takes to complete all procedures to trade. It shows that an increase in the number of documents required for export and import tends...
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| Language: | English |
| Published: |
2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111205100733 http://hdl.handle.net/10986/3661 |
| Summary: | This paper analyzes the relationship
between the number of documents required to export and
import and the time it takes to complete all procedures to
trade. It shows that an increase in the number of documents
required for export and import tends to increase the time
cost of shipments. However, this relationship is far from
simplistic, varying sharply in magnitude across rich versus
poor countries and small versus large countries.
Specifically, the increase in the time cost of increased
documentation is much larger for relatively poor and larger
countries. One interpretation of this finding is that richer
countries that have more resources and smaller countries
that rely more on trade invest more in building efficient
documentation systems. Hence, in such countries relative to
others, increased documentation adds less to the time cost
at the margin. At a broader level, the findings suggest
caution in interpreting how input-based measures such as the
number of required documents to trade affect the quality of
the business environment as far as the associated cost is concerned. |
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