The impact of institutional regulation and facilitation on cross-border trade

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

The conventional wisdom in the economic circles suggests that reducing trade tariffs will enhance cross-border trade. However, it is not necessarily the case in reality, as there can be other institutional mechanisms that influence cross-border trade. To gain some understanding of this reality, this article analyses the impact of trade restriction and facilitation regulations on the cross-border trade of Dumai in Indonesia's Province of Riau. The methodology consisted of interviewing key government officials and cross-border traders and examining documentary sources. The findings of the study revealed that institutional restriction on and facilitation mechanisms of Dumai's cross-border trade had worked to the disadvantage of the local trading communities and local economy. Not only did restriction regulations curtail cross-border trade and thus local economic development, it had also prohibited the growth of trade related facilities such as one-stop logistics centres. In conclusion, local states would be handicapped in enabling cross-border trades if cross-border trade regulations were controlled by the central government. As such, further cross border trade studies should explore inter- and intra-state relations to gauge further insights into the complexity of the matter.

Original languageEnglish
Pages (from-to)18-22
Number of pages5
JournalWorld Applied Sciences Journal
Volume13
Issue number13 SPECIAL ISSUE
Publication statusPublished - 2011

Fingerprint

Facilitation
Cross-border trade
Traders
Cross-border
Wisdom
Tariffs
Local economy
Indonesia
Disadvantage
Economics
Methodology
Logistics
Central government
Interviewing
Local economic development
Government

Keywords

  • Cross-border trade
  • Facilitation
  • Institution
  • Regulation

ASJC Scopus subject areas

  • General

Cite this

@article{272c853818e14a1584330e5ee9116bdb,
title = "The impact of institutional regulation and facilitation on cross-border trade",
abstract = "The conventional wisdom in the economic circles suggests that reducing trade tariffs will enhance cross-border trade. However, it is not necessarily the case in reality, as there can be other institutional mechanisms that influence cross-border trade. To gain some understanding of this reality, this article analyses the impact of trade restriction and facilitation regulations on the cross-border trade of Dumai in Indonesia's Province of Riau. The methodology consisted of interviewing key government officials and cross-border traders and examining documentary sources. The findings of the study revealed that institutional restriction on and facilitation mechanisms of Dumai's cross-border trade had worked to the disadvantage of the local trading communities and local economy. Not only did restriction regulations curtail cross-border trade and thus local economic development, it had also prohibited the growth of trade related facilities such as one-stop logistics centres. In conclusion, local states would be handicapped in enabling cross-border trades if cross-border trade regulations were controlled by the central government. As such, further cross border trade studies should explore inter- and intra-state relations to gauge further insights into the complexity of the matter.",
keywords = "Cross-border trade, Facilitation, Institution, Regulation",
author = "{V. Selvadurai}, Sivapalan and Hamzah Jusoh and Habibah Ahmad and Buang, {Amiah @ Amriah} and Er, {Ah Choy} and {Mat Jali}, {Mohd. Fuad} and Novel Lyndon",
year = "2011",
language = "English",
volume = "13",
pages = "18--22",
journal = "World Applied Sciences Journal",
issn = "1818-4952",
publisher = "International Digital Organization for Scientific Information",
number = "13 SPECIAL ISSUE",

}

TY - JOUR

T1 - The impact of institutional regulation and facilitation on cross-border trade

AU - V. Selvadurai, Sivapalan

AU - Jusoh, Hamzah

AU - Ahmad, Habibah

AU - Buang, Amiah @ Amriah

AU - Er, Ah Choy

AU - Mat Jali, Mohd. Fuad

AU - Lyndon, Novel

PY - 2011

Y1 - 2011

N2 - The conventional wisdom in the economic circles suggests that reducing trade tariffs will enhance cross-border trade. However, it is not necessarily the case in reality, as there can be other institutional mechanisms that influence cross-border trade. To gain some understanding of this reality, this article analyses the impact of trade restriction and facilitation regulations on the cross-border trade of Dumai in Indonesia's Province of Riau. The methodology consisted of interviewing key government officials and cross-border traders and examining documentary sources. The findings of the study revealed that institutional restriction on and facilitation mechanisms of Dumai's cross-border trade had worked to the disadvantage of the local trading communities and local economy. Not only did restriction regulations curtail cross-border trade and thus local economic development, it had also prohibited the growth of trade related facilities such as one-stop logistics centres. In conclusion, local states would be handicapped in enabling cross-border trades if cross-border trade regulations were controlled by the central government. As such, further cross border trade studies should explore inter- and intra-state relations to gauge further insights into the complexity of the matter.

AB - The conventional wisdom in the economic circles suggests that reducing trade tariffs will enhance cross-border trade. However, it is not necessarily the case in reality, as there can be other institutional mechanisms that influence cross-border trade. To gain some understanding of this reality, this article analyses the impact of trade restriction and facilitation regulations on the cross-border trade of Dumai in Indonesia's Province of Riau. The methodology consisted of interviewing key government officials and cross-border traders and examining documentary sources. The findings of the study revealed that institutional restriction on and facilitation mechanisms of Dumai's cross-border trade had worked to the disadvantage of the local trading communities and local economy. Not only did restriction regulations curtail cross-border trade and thus local economic development, it had also prohibited the growth of trade related facilities such as one-stop logistics centres. In conclusion, local states would be handicapped in enabling cross-border trades if cross-border trade regulations were controlled by the central government. As such, further cross border trade studies should explore inter- and intra-state relations to gauge further insights into the complexity of the matter.

KW - Cross-border trade

KW - Facilitation

KW - Institution

KW - Regulation

UR - http://www.scopus.com/inward/record.url?scp=84860843770&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84860843770&partnerID=8YFLogxK

M3 - Article

VL - 13

SP - 18

EP - 22

JO - World Applied Sciences Journal

JF - World Applied Sciences Journal

SN - 1818-4952

IS - 13 SPECIAL ISSUE

ER -