Trade patterns and global value chains in East Asia: - IDE-JETRO

Trade Patterns and Global Value Chains in East AsiaFigure 4 shows the evolution of cost and time to export atthe border in 2005 and 2008. 11 Cost to export increasedslightly for almost all countries in the sample, with thenotable exception of Thailand, for which it fell by some26 per cent. Time to export declined for all countries withthe exception of China (where it rose by three days); thebiggest decreases were in Thailand, India and HongKong (China) (a reduction of 10, 10 and seven days,respectively). Bigger trade volumes could explain therise in China’s time to export. Larger trade volumes couldincrease congestion and lessen the efficiency of tradeinfrastructure, leading to a positive estimated effect oftime costs on trade. As an example of the latter, whentrade volumes surged in China in 2003, the wait timeat Shanghai’s port expanded by two days on average. 12Figure 4Cost to export and time to export, 2005 and 2008120030100025US$ per container800600400201510No. of days200500JapanIndiaPhilippinesKorea, Rep. ofChineseTaipeiIndonesiaThailandHong Kong(China)Viet NamChinaSingaporeMalaysiaCost to export2005Cost to export2008Time to export2005Time to export2008Same time to export2005-2008Source: World Bank, Doing Business Database.Figure 5 shows the cost and time it takes to import at theborder. The cost to import has increased for most of theeconomies in the sample, i.e. China, Hong Kong (China),Malaysia, the Philippines, Singapore, Chinese Taipei andViet Nam. India, Indonesia, the Republic of Korea andThailand, however, have managed to reduce the costof importing goods. Time to import has either remainedsteady or decreased for all countries in the sample. Aspectacular 70 per cent drop is registered for HongKong (China); other significant decreases occurred forIndia and Thailand (down 50 per cent and 40 per centrespectively).34