The paper
This paper measures transparency through the predictability and simplicity of the trading environment. Using APEC as a case study, it examines how these features contribute to regional integration.
Research findings
- A more transparent trading environment is associated with stronger trade, over and above the relationship with tariffs and other traditional barriers.
- The estimated relationship is particularly strong for differentiated products, where information and uncertainty costs can matter greatly.
Policy takeaways
- Include simpler procedures and more predictable administration in the trade facilitation agenda.
- Pursue transparency reforms through national and regional cooperation, without waiting for a comprehensive new trade agreement.