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Trade Procedures and Trade Deflection - The Case of the European Union

Nilsson, Charlie LU (2021) NEKH03 20202
Department of Economics
Abstract (Swedish)
As tariffs and other conventional barriers to trade have been substantially dismantled over the course of the past decades, the relative costs of inefficient trade procedures have risen and their trade distorting effects are gaining more attention from both policymakers and academics. The purpose of this study is to contribute to the emerging literature on the topic by turning the scope towards the EU, investigating if trade deflection occurs in the union due to the disharmonized trade procedures of the member countries. Using two specifications of a gravity model, the relationship between import volumes and trade procedure efficiency in the EU is empirically analyzed. Evidence of trade deflection is provided by proving that, all else... (More)
As tariffs and other conventional barriers to trade have been substantially dismantled over the course of the past decades, the relative costs of inefficient trade procedures have risen and their trade distorting effects are gaining more attention from both policymakers and academics. The purpose of this study is to contribute to the emerging literature on the topic by turning the scope towards the EU, investigating if trade deflection occurs in the union due to the disharmonized trade procedures of the member countries. Using two specifications of a gravity model, the relationship between import volumes and trade procedure efficiency in the EU is empirically analyzed. Evidence of trade deflection is provided by proving that, all else equal, EU imports from the rest of the world will be greater in EU countries that have more efficient import procedures, and that EU imports from other EU countries will be greater from those that have more efficient import procedures. The investigation is made at a product level, also providing evidence that procedure-induced deflection will occur at a greater extent the more time sensitive the goods being traded are. (Less)
Please use this url to cite or link to this publication:
author
Nilsson, Charlie LU
supervisor
organization
course
NEKH03 20202
year
type
M2 - Bachelor Degree
subject
keywords
trade procedures, trade deflection, time sensitivity, EU, customs unions
language
English
id
9035867
date added to LUP
2021-03-11 12:07:57
date last changed
2021-03-11 12:07:57
@misc{9035867,
  abstract     = {{As tariffs and other conventional barriers to trade have been substantially dismantled over the course of the past decades, the relative costs of inefficient trade procedures have risen and their trade distorting effects are gaining more attention from both policymakers and academics. The purpose of this study is to contribute to the emerging literature on the topic by turning the scope towards the EU, investigating if trade deflection occurs in the union due to the disharmonized trade procedures of the member countries. Using two specifications of a gravity model, the relationship between import volumes and trade procedure efficiency in the EU is empirically analyzed. Evidence of trade deflection is provided by proving that, all else equal, EU imports from the rest of the world will be greater in EU countries that have more efficient import procedures, and that EU imports from other EU countries will be greater from those that have more efficient import procedures. The investigation is made at a product level, also providing evidence that procedure-induced deflection will occur at a greater extent the more time sensitive the goods being traded are.}},
  author       = {{Nilsson, Charlie}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Trade Procedures and Trade Deflection - The Case of the European Union}},
  year         = {{2021}},
}