Abstract
COVID-19 has not only dramatically affected the ordinary course of social life, but also caused an idiosyncratic downturn in the global economy and created multidimensional effects on international trade and Cross-Border E-Commerce merchandise flows. This paper provides unique empirical evidence of how the consequences of the pandemic have distinctively diverged on conventional and simplified customs clearance, which includes Cross-Border E-Commerce orders, differed significantly. The Difference-in-differences (DiD) and Causal Inference estimates for the 2019:01-2021:06 interval suggest that simplified customs clearance shows more resilience to COVID-19 effects relative to conventional customs clearance and reduces the negative impact of COVID-19 influences on export performance in the case of Turkey. The fundamental outcomes remain consistent when the sample includes emerging markets and when the analysis employs the export of consumer goods as opposed to total exports in the conventional mode. Overall, the findings highlight the significant role of E-Commerce and simplified customs processes in enhancing export performance.
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Notes
In Turkey SCPD is called as ETGB which is Turkish abbreviation for Electronic Commerce Customs Declaration. In spite of this type of declaration is mostly characterized for cross-border e-commerce, it can be used for non-e-commerce operations.
Article 10/10 of the Communiqué on Customs Procedures for Goods Transported by Post and Express Cargo (serial number: 1) states: "Within the framework of the first and third subparagraphs of Article 126 (1)(a) of the Decision, goods may be released for free circulation for the same person under no more than five consignment notes in any one calendar month, whether they are of the same or different types. Please see https://www.resmigazete.gov.tr/eskiler/2022/04/20220422-5.htm for more details.
SCPD transactions are performed by authorized airline cargo companies. This type of export is made by just air transportation, which is the most expensive mode of transportation.
The “ln” operators show logarithmically transformed variables.
In the implementation of the estimation procedures, a dollar-based weighting is applied to increase the importance of countries to which Turkey exports and whose export share is higher.
SCPD offers considerable simplifications for custom procedures as mentioned in Table 2 in the introduction part, however, it is limited to 15.000 Euro and 300 kg for exportation.
The export of consumer and intermediate goods are calculated based on Broad Economic Classification (BEC).
The country classifications are based on International Money Fund (IMF) classification.
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Derindag, O.F., Yasar, Z.R., Aslan, C. et al. Analyzing the differential effects of COVID-19 on export flows: a focus on customs procedures. Empirica 51, 977–1000 (2024). https://doi.org/10.1007/s10663-024-09634-y
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DOI: https://doi.org/10.1007/s10663-024-09634-y
Keywords
- E-customs
- Simplified customs procedure declaration
- Cross-border e-commerce
- Export
- COVID-19
- Differences in differences