NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Border Delays and Trade Liberalization

Edgar Cudmore, John Whalley

NBER Working Paper No. 9485
Issued in February 2003
NBER Program(s):   ITI

Delays at the border for customs clearance are seemingly a central feature of the trade regime in the CIS states. Here, we argue that with queuing costs being endogenously determined in such circumstances tariff liberalization (even in the small economy case) can be welfare worsening since tariff revenues are replaced by resource using queuing costs. On the other hand, corruption can be welfare improving if queuing costs are replaced by resource transferring bribes. We also show how added distortions between perishable and non-perishable, or between light and heavy goods can also arise. We show these outcomes using a simple general equilibrium model, and explore the numerical implications using Russian data. The orders of magnitude are both significant and opposite in sign to conventional analyses.

download in pdf format
   (179 K)

email paper

This paper is available as PDF (179 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Published: Border Delays and Trade Liberalization, Edgar Cudmore, John Whalley, in International Trade in East Asia, NBER-East Asia Seminar on Economics, Volume 14 (2005), University of Chicago Press (p. 391 - 406)

Users who downloaded this paper also downloaded these:
Cudmore and Whalley Border Delays and Trade Liberalization
Anderson and van Wincoop w8515 Borders, Trade and Welfare
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us