The Efficiency of Document and Border Procedures for International Trade

In many countries, document and border procedures create trading barriers, thereby impairing economic growth. These can range from insufficient transshipment facilities to unsupportive institutional arrangements. To address this, countries have taken reforms to improve their procedures by introducing electronic documentation systems, strengthening border infrastructure, and enhancing customs procedures. However, the efficiency of the document and border procedures in each country remains unclear, as well as how new reforms can affect these. This study investigated the efficiency of document and border procedures in each country, defined as the trade volume and value per required cost, time, and documents in the trading procedures. The efficiencies were calculated through a data envelopment analysis with cross-sectional data from 2019 and a window analysis with panel data from 2014 to 2019. The study found a positive change in export procedure efficiency after all three types of reforms were instituted in a country, but a positive change in import efficiency only after the introduction of electronic documentation. All countries were classified according to their document and border procedure strengths and weaknesses.