IMPACT OF TRADE FACILITATION ON SECTORAL EXPORT PERFORMANCE: A Case for SAARC Countries

Abstract

Previous literature focuses on aggregate data of export in case of SAARC region that could possibly mask and miss the channels between trade facilitation and export growth. Therefore, in order to assess the effect of trade facilitation on export performance and unmask the important information for policy formulation. The underline aim of this study is to investigate the nexus of trade facilitation and sectoral export namely primary and manufacturing export performance of SAARC countries. Using gravity model augmented with trade facilitation indicators, the overall empirical results confirm that trade facilitation improvement can indeed contribute to the export performance of SAARC region. Findings of the study recommend that in the face of lackluster export performance of most member countries, trade facilitation reforms are recommended as an effective remedy to maintain and enhance the export performance in the region.

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