The paper
This article examines what the Doing Business trade-time indicators actually capture. A structural gravity analysis compares their relationship with goods and services trade and contrasts them with measures of specific trade-facilitation policies.
Research findings
- Doing Business trade times are negatively associated with both goods and services trade, even though services do not undergo the physical border procedures the indicator describes.
- The corresponding relationship with services trade disappears when the analysis uses the OECD Trade Facilitation Indicators, which measure policy inputs.
Implications for applied research
- Choose indicators that match the policy mechanism being evaluated; an apparent border-delay measure may also reflect the wider business environment.
- Combine policy-specific indicators with directly observed shipment or customs data when assessing reforms to border procedures.