Timeliness and contract enforceability in intermediate goods trade, Vol. 1 of 1

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Timeliness and contract enforceability in intermediate goods trade

Author:	Gamberoni, Elisa; Lanz, Rainer; Piermartini, Roberta; ;	Collection Title:	Policy Research working paper ; no. WPS 5482
Country:	World;	Date Stored:	2010/12/01
Document Date:	2010/11/01	Document Type:	Policy Research Working Paper
Language:	English	Region:	The World Region
Report Number:	WPS5482	SubTopics:	Environmental Economics & Policies; Transport Economics Policy & Planning; Economic Theory & Research; Free Trade; Trade Policy
Volume No:	1 of 1

Summary: 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, the paper contributes 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.


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