Nicita, AlessandroHoekman, Bernard2012-05-242012-05-242008-12https://hdl.handle.net/10986/6341This paper briefly reviews new indices of trade restrictiveness and trade facilitation that have been developed at the World Bank. The paper also compares the trade impact of different types of trade restrictions applied at the border with the effects of domestic policies that affect trade costs. Based on a gravity regression framework, the analysis suggests that tariffs and non-tariff measures continue to be a significant source of trade restrictiveness for low-income countries despite preferential access programs. This is because the value of trade preferences is quite limited: a new measure of the relative preference margin developed in the paper reveals that this is very low for most country-pairs. Most countries with very good (duty-free) access to a market generally have competitors that have the same degree of access. The empirical analysis suggests that measures to improve logistics performance and facilitate trade are likely to have the greatest positive effects in expanding developing country trade, increasing the trade impacts of lowering remaining border barriers by a factor of two or more.CC BY 3.0 IGOTARIFFSNONTARIFF MEASURESTRADE FACILITATIONLOGISTICSECONOMIC DEVELOPMENTDOHA ROUNDAD VALOREMAGRICULTURAL PRODUCTSAGRICULTURAL TRADEAGRICULTUREAPPARELAVERAGE TARIFFAVERAGE TARIFFSBARRIERS TO TRADEBASKET OF GOODSBEST MARKETBILATERAL IMPORTSBILATERAL TRADEBORDER PROTECTIONBORDER TRADEBUDGET DEFICITSBUSINESS ENVIRONMENTCARRIERSCOMPARATIVE ADVANTAGECOMPETITIVENESS INDEXCONTRACT ENFORCEMENTCOUNTERVAILING MEASURESCOUNTRY FIXED EFFECTSCUSTOMSCUSTOMS BROKERSCUSTOMS CLEARANCECUSTOMS CLEARANCE PROCEDURESDEMAND ELASTICITIESDEMAND ELASTICITYDEVELOPED COUNTRIESDEVELOPING COUNTRIESDEVELOPING COUNTRYDOMESTIC INDUSTRIESDOMESTIC TRADEDUMPINGE-BUSINESSECONOMIC POLICYEUROPEAN UNIONEXPORT COSTSEXPORT MARKETSEXPORTERSEXPORTING COUNTRIESEXPORTSFACTORY GATEFREE TRADEFREE TRADE AGREEMENTSFREIGHT FORWARDERSGDPGDP PER CAPITAGLOBAL COMPETITIVENESSGLOBAL MARKETSGLOBAL TRADEGRAVITY EQUATIONGRAVITY MODELGRAVITY MODELSIMPORT COSTSIMPORT VALUESIMPORTING COUNTRIESIMPORTING COUNTRYINCOMEINTERNAL TRADEINTERNATIONAL BANKINTERNATIONAL COOPERATIONINTERNATIONAL ECONOMICSINTERNATIONAL TRADEINVESTMENT CLIMATELOW-INCOME COUNTRIESMARKET ACCESSMARKET REGULATIONMERCHANDISE TRADE FLOWSMIDDLE INCOME COUNTRIESMIDDLE-INCOME COUNTRIESMIDDLE-INCOME ECONOMIESPARTICULAR COUNTRYPATTERN OF TRADEPOLICY RESEARCHPOSITIVE EFFECTSPREFERENTIAL ACCESSPREFERENTIAL AGREEMENTSPREFERENTIAL MARGINPREFERENTIAL MARGINSPREFERENTIAL RATESPREFERENTIAL TARIFFPREFERENTIAL TRADEPREFERENTIAL TRADE AGREEMENTSPREFERENTIAL TRADE ARRANGEMENTSPROTECTIONISTQUANTITATIVE RESTRICTIONSRED TAPEREGIONAL AGREEMENTSREGIONAL TRADEREGIONAL TRADE AGREEMENTSREGULATORY ENVIRONMENTREGULATORY FRAMEWORKREGULATORY POLICIESREGULATORY REGIMESRULES OF ORIGINTARIFF BARRIERSTARIFF EQUIVALENTTARIFF EQUIVALENTSTARIFF LINETARIFF LINESTARIFF PREFERENCESTARIFF PROTECTIONTARIFF REDUCTIONTARIFF STRUCTURETRADE COSTSTRADE DATATRADE DISTORTIONSTRADE EFFECTSTRADE FLOWSTRADE IMPEDIMENTSTRADE LIBERALIZATIONTRADE LOGISTICSTRADE MORETRADE PERFORMANCETRADE POLICIESTRADE POLICYTRADE POLICY ANALYSISTRADE POLICY REFORMTRADE PREFERENCETRADE PREFERENCESTRADE RESTRICTIONSTRADE TAXESTRADE VOLUMESTRANSACTIONS COSTSTRANSPARENCYTRANSPORT COSTSUNILATERAL ACTIONSUNILATERAL REFORMSVALUE OF IMPORTSVALUE OF TRADEVOLUME OF TRADEWORLD DEVELOPMENT INDICATORSWTOZERO TARIFFSWorld Bank10.1596/1813-9450-4797