Trade costs and exportation: A comparison between enterprises in Southeast Asia and Latin America

This paper investigates the impact of trade costs (export customs clearance, subjective assessment of trade obstacles, and input inventory) on the export propensity and intensity of enterprises in Southeast Asia (SEA) and Latin America (LA) using World Bank's enterprise surveys. The results demonstrate that obstacles to trade do not significantly affect export intensity in exporting enterprises. An international comparison between SEA and LA shows that the unfavorable conditions that export-intensive enterprises suffer in LA discourage enterprises' integration into international production networks. Export-intensive enterprises in LA suffer from the burdens of input inventory and customs clearance for exports.