The effect of trade and customs digitalization on agrifood trade: A gravity approach

Abstract Transaction costs create inefficiencies in agricultural markets, and poor trade digitalization lowers agrifood productivity of developing countries. This paper argues that facilitation via cuts transaction thereby increasing because it streamlines customs operational procedures. Our methodology represents by the variables paperless digitalized non-tariff measures compliance. Additionally, our empirical strategy utilizes cross-country data employing a gravity model with fixed effects socioeconomic controls. We find high-bar evidence one-standard deviation improvement e-trade at exporter level importer increase exports 9.7 per cent 1.3 cent, respectively, larger magnitudes for processed products Sub-Saharan African Asian Consequently, is inevitable to avoid diversion an increasingly competitive globalized world. There are opportunities countries benefit from such relationship stronger between origin, which increases agency Global South.