Behind-The-Border Determinants Of Bilateral Trade Flows In East Asia

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Executive Summary

The global economy has witnessed significant reduction in traditional trade barriers (e.g., tariffs and quotas) in the past years. This trend has been mainly a result of unilateral, regional, and multilateral trade liberalization reforms. However, technical barriers to trade and other types of trade barriers still exist and have proliferated, hampering the free flow of goods and services as well as investments across borders. Some examples of trade bottlenecks include trade processes and procedures, trade-related infrastructures, regulations, and institutions. In this regard, trade facilitation has become one of the important trade policy measures that are being pursued by countries around the world.

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