Trade Facilitation and Innovation: Evidence from South Asia Subregional Economic Cooperation Countries

Abstract

This paper examines how trade times affect innovation behavior. Analysis in the paper shows that shorter trade times are associated with the introduction of new products and new management systems. From a policy perspective, results suggest that long-run growth in the South Asia Subregional Economic Cooperation countries can be supported in part by improving trade facilitation, where performance lags substantially behind the global frontier.