Proceedings of ICLT 2017
IMPACT OF TRADE FACILITATION ON BILATERAL TRADE FLOWS BETWEEN VIETNAM AND ASEAN COUNTRIES
Trinh Thi Thu Huong; Nguyen Hoang Khanh
Department of Logistics and Freight Forwarding, Faculty of Economics and International Business, Foreign Trade University, Vietnam; Faculty of Economics and International Business, Foreign Trade University, Vietnam
International Conference on Logistics & Transport 2017, Bangkok, Thailand, pp. 212-220
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Abstract
Purpose: This paper focuses on examining the relationship between bilateral trade flows and trade facilitation and estimating the gains in trade derived from improvements in trade facilitation for ASEAN members. Methodology/design/approach: The relationship between trade facilitation and bilateral trade flows is estimated using a gravity model that includes other standard variables. The paper uses panel data obtained from Vietnam and 8 ASEAN members over the period 2004 – 2015. Trade facilitation is measuring through UNCATD’s Liner Shipping Connectivity Index. Findings and originality: Based on the research results, the paper provides evidence that the marginal effect of the sea transport efficiency improvement on trade flows. The results also suggest that the impact of sea transport efficiency is somehow larger than the traditional variables including GDP per capita, distance and exchange rate. In addition the paper provides recommendations and solutions that encompass a series of policies to enhance ASEAN members’ and Vietnam’s capacity. Research limitations: Limitation is related to the availability of the required assessment data. Choosing the impact of trade facilitation on Vietnam-ASEAN bilateral trade flows as a research subject limits us using various indicators in estimating, thus posing restriction on further results.
Keywords
Trade facilitation; Liner shipping connectivity index (LSCI); gravity model; bilateral trade flows; ASEAN; Vietnam
Citation
Trinh Thi Thu Huong; Nguyen Hoang Khanh (2017). IMPACT OF TRADE FACILITATION ON BILATERAL TRADE FLOWS BETWEEN VIETNAM AND ASEAN COUNTRIES. Proceedings of the International Conference on Logistics & Transport (ICLT 2017), Bangkok, Thailand, pp. 212-220.