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Existing empirical studies on trade costs and trade facilitation largely focus on aggregate impacts of reform due to data availability. The authors take a step toward filling in this gap in literature. Using the World Bank Enterprises Surveys, the paper extends the scope of empirical literature to firm dimension with a focus on SMEs. For Asia countries, they find that improvement in trade facilitation indicators tend to increase the probability that SMEs will become exporter - as well as their export propensity. In particular, increasing policy predictability and enhancing information technology services are the most effective measures for SMEs in expanding trade.
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