Duval, YannArvis, Jean-FrançoisShepherd, BenUtoktham, Chorthip2013-01-282013-01-282013-01https://hdl.handle.net/10986/12182The authors use newly collected data on trade and production in 178 countries to infer estimates of trade costs in agriculture and manufactured goods for the 1995-2010 period. The data show that trade costs are strongly declining in per capita income. Moreover, the rate of change of trade costs is largely unfavorable to the developing world: trade costs are falling noticeably faster in developed countries than in developing ones, which serves to increase the relative isolation of the latter. In particular, Sub-Saharan African countries and low-income countries remain subject to very high levels of trade costs. In terms of policy implications, the analysis finds that maritime transport connectivity and logistics performance are very important determinants of bilateral trade costs: in some specifications, their combined effect is comparable to that of geographical distance. Traditional and non-traditional trade policies more generally, including market entry barriers and regional integration agreements, play a significant role in shaping the trade costs landscape.en-USCC BY 3.0 IGOABSOLUTE VALUEAD VALOREMAGRICULTURAL MARKETSAGRICULTURAL PRODUCTSAGRICULTURAL TRADEAGRICULTUREAIR TRANSPORTAPPLIED TARIFFAVERAGE COSTSAVERAGE TRADEBARRIERBARRIERS TO ENTRYBENCHMARKBENCHMARKSBILATERAL TRADEBILATERAL TRADE DATACHANGES IN TRADECOMMODITIESCOMMODITYCOMMON MARKETCOMPETITIVENESSCONNECTIVITYCONNECTIVITY INDEXCOST REDUCTIONCOUNTRY TARIFFCURRENCYCURRENCY UNIONDATA AVAILABILITYDEFLATORSDEVELOPED COUNTRIESDEVELOPING COUNTRIESDEVELOPING WORLDDEVELOPMENT POLICYDIFFERENT CURRENCIESDISTRIBUTION COSTSDOMESTIC PRODUCTIONDOMESTIC TRADEECONOMETRIC ESTIMATESECONOMIC DEVELOPMENTECONOMIC POLICYELASTICITYELASTICITY OF SUBSTITUTIONEMERGING MARKETSEUROPEAN UNIONEXCHANGE RATEEXPORT INCENTIVESEXPORT PROCESSINGEXPORT RATIOEXPORTERSEXPORTING COUNTRYEXPORTSFINANCIAL CRISISFIXED COSTFIXED COSTSFOREIGN COMPANIESFOREIGN FIRMSFREE TRADEFREE TRADE AREAFUTURE RESEARCHGDPGLOBAL ECONOMYGLOBAL MARKETSGLOBAL TRADEGLOBAL TRADINGGLOBALIZATIONGRAVITY EQUATIONGRAVITY MODELGRAVITY MODELSGROSS OUTPUTIMPORT MARKETSIMPORT PRICESIMPORTING COUNTRIESIMPORTING COUNTRYINCOME GROUPINCOME GROUPSINCREASING RETURNSINDEX NUMBERSINFORMATION SYSTEMINTERMEDIATE GOODSINTERMEDIATE INPUTSINTERNATIONAL BANKINTERNATIONAL ECONOMICSINTERNATIONAL ECONOMYINTERNATIONAL PRODUCTIONINTERNATIONAL TRADEINTERNATIONAL TRADE IN SERVICESINTERNATIONAL TRADINGINTERNATIONAL TRADING SYSTEMINTRAREGIONAL TRADELIBERALIZATIONLOCAL CURRENCYLOW-INCOME COUNTRIESLOW-INCOME COUNTRYLOW-INCOME ECONOMIESMARKET ENTRYMARKET REGULATIONMEASURE OF TRADEMIDDLE INCOME COUNTRIESMIDDLE INCOME COUNTRYMODE OF TRANSPORTMULTILATERAL TRADENET EXPORTSNON-TARIFF BARRIERSNUMERICAL VALUEOPENNESSPATTERN OF TRADEPER CAPITA INCOMEPER CAPITA INCOMESPOLICY PRIORITIESPOLICY RESEARCHPREFERENTIAL AGREEMENTSPRIVATE SECTOR DEVELOPMENTRAPID ECONOMIC GROWTHRATES OF PROTECTIONREGIONAL GROUPINGSREGIONAL GROUPSREGIONAL INTEGRATIONREGIONAL INTEGRATION AGREEMENTSREGIONAL LEVELREGIONAL TRADEREGULATORY BARRIERSREGULATORY SYSTEMTARIFF BARRIERSTARIFF PROTECTIONTARIFF RATESTOTAL OUTPUTTRADE BARRIERSTRADE COSTSTRADE DATATRADE FACILITATIONTRADE FLOWSTRADE IN GOODSTRADE INTEGRATIONTRADE LOGISTICSTRADE MODELSTRADE MORETRADE PERFORMANCETRADE POLICIESTRADE POLICYTRADE POLICY AGENDATRADE POLICY REFORMTRADE PROTECTIONTRADE RELATIONSTRADE VALUESTRADESTRADING VOLUMESTRANSPORT COSTSVALUE ADDEDVALUE OF EXPORTSWORLD DEVELOPMENT INDICATORSWORLD ECONOMYWORLD TRADEWORLD TRADING SYSTEMWorld Bank10.1596/1813-9450-6309