Timeliness and Contract Enforceability in Intermediate Goods Trade
This paper shows that the institutional environment and the ability to export on time are sources of comparative advantage as important as factors of production. In particular, the ability to export on time is crucial to explain comparative advanta...
| Main Authors: | , , |
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| Language: | English |
| Published: |
2012
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| Subjects: | |
| 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_20101201081524 http://hdl.handle.net/10986/3971 |
| Summary: | This paper shows that the institutional
environment and the ability to export on time are sources of
comparative advantage as important as factors of production.
In particular, the ability to export on time is crucial to
explain comparative advantage in intermediate goods. These
findings underscore the importance of investing in
infrastructure and fostering trade facilitation to boost a
country's participation in production networks.
Furthermore, the paper contributes to the so-called
"distance puzzle" by showing that the increasing
importance of distance over time is in part driven by trade
in intermediate goods. |
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