What's Another Day? The Impact of Non-Tariff Barriers on Trade

In light of recent policy developments, there has been renewed interest in the impact of non-tariff barriers on the volume of trade between countries. Using survey data which identifies the time it takes to overcome all... [ view full abstract ]

In light of recent policy developments, there has been renewed interest in the impact of non-tariff barriers on the volume of trade between countries. Using survey data which identifies the time it takes to overcome all documentary regulations and border waiting times, this paper identifies the impact of non-tariff barriers on trade volumes. We find that a 10% increase in non-tariff barriers in the form of border delays and documentary compliance is associated with a 1.15% decline in total trade flows. We also split our results into goods which are "time sensitive" and others. Our findings indicate that large bulky manufactured items and perishable foods are most exposed to border delays.