The paper
This paper asks whether trade facilitation mainly benefits large lead firms or also reaches smaller suppliers in developing countries. It combines a discussion of value-chain mechanisms with firm-level evidence on exporting and border delays.
Research findings
- The data provide no consistent support for the claim that only large firms benefit from better trade facilitation.
- Shorter export times are associated with stronger exporting across firm sizes, including smaller firms supplying value chains.
Policy takeaways
- Include trade facilitation in policies supporting small producers and exporters.
- Economies dominated by supplier firms have a stake in reducing border delays, even when few global lead firms are headquartered there.
