Value of Time in Trade: Customs Automization
(Created for the GTAP short course 2001)

I. Summary

Introduction of electronically harmonized custom system will reduce the time and cost spent on custom paperwork, processing and shipments. The custom automization will also improve efficiency in shipments of products by eliminating the time waiting for custom clearance at ports. For this example simulation those savings in time and cost by custom automization are computed by shocking iceberg trade costs, "ams".

II.   REGIONS AND COMMODITIES (GTAP version 4 database)

17 regions are:
Japan, Korea, Singapore, Malaysia, Thailand, IndPhlViet ( Indonesia, Philipines and Viet Nam ),
China, Hong Kong, Taiwan, SoAsia ( Rest of South East Asia ), AusNZL ( Australia and New Zealand ),
Canada, USA, Mexico, Chile, WEurope ( Western Europe,  EU and EFTA ), ROW          

17 commodities are:
rice, othgrains ( other grains ), othcrops ( other crops ), meat ( meat products ), othfood ( other processed foods ),
fish ( fisheries ), texwap ( textiles and wearing apparel ), leather ( leather products ),
extract ( extraction and metal products ), pchemineral  ( chemical, energy products ), omnfcs ( other manufacturing ),
autos ( motor vehicles and parts ), machequip ( machinery and equipment ), 
utilities ( utilities, public services and dwellings ), construction ( construction ), tradetrans ( trade and transport services ),
busfinance ( financial and business services )

III.   EXPERIMENT FILES (Case3.EXP)
Take a look at the file for the specification on Closure, Shocks and Solution method. 


Reading: David Hummels "Time as a trade barrier", July 2001
