The paper
Firm-level data from 85 developing countries connect border delays with both access to imported inputs and export performance. The analysis also examines whether firms export directly or rely on intermediaries.
Research findings
- Shorter import licensing times are associated with greater use of imported intermediate inputs.
- Longer export clearance times are associated with a lower share of output exported and greater reliance on third-party distributors.
Policy takeaways
- Treat import licensing reform as part of an export competitiveness strategy, since exporters also depend on foreign inputs.
- Streamline export clearance to help firms reach foreign customers directly as well as through intermediaries.