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Timeliness and Contract Enforceability in Intermediate Goods Trade

This paper shows that the institutional environment and the ability to export on time aresources of comparative advantage as important as factors of production.

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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.

No: ERSD-2010-14

Elisa Gamberoni The World Bank
Rainer Lanz Organisation for Economic Co-operation and Development, OECD
Roberta Piermartini World Trade Organization, WTO

Manuscript date: November 2010

Key Words:

aid for trade, trade facilitation, offshoring, export times, quality of infrastructure, quality of institutions, comparative advantage

JEL classification numbers:

F13, F14, L60


Disclaimer  back to top

This is a working paper, and hence it represents research in progress. This paper represents the opinions of the author, and is the product of professional research. It is not meant to represent the position or opinions of the WTO or its Members, nor the official position of any staff members. Any errors are the fault of the author. Copies of working papers can be requested from the divisional secretariat by writing to: Economic Research and Statistics Division, World Trade Organization, Rue de Lausanne 154, CH 1211 Geneva 21, Switzerland. Please request papers by number and title.

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