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WTO Working Papers

WTO working papers usually represent research in progress. Such research may be conducted in the preparation of WTO Secretariat reports, studies or other material for WTO members. The papers are circulated for comment because the WTO considers critical review of professional research to be extremely important.

English

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 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, we contribute 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.

English

Keywords: offshoring, quality of institutions, quality of infrastructure, comparative advantage, export times, aid for trade, trade facilitation
JEL: F13: International Economics / Trade / Trade Policy; International Trade Organizations; F14: International Economics / Trade / Empirical Studies of Trade; L60: Industrial Organization / Industry Studies: Manufacturing / Industry Studies: Manufacturing: General
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