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Abstract

Using an augmented gravity model this paper examines how different aspects of trade facilitations affect the export performance of the nations. The main objective of this paper is to evaluate the effect of one of the main pillars of trade facilitations namely e-governance on international trade. The augmented gravity model is estimated using pooled and cross-sectional, OLS and Instrumental Variable regression. The paper studies the impact of e-governance on agricultural exports for the years 2003 – 2005. The results suggest that better e-governance positively affects the volume of agricultural exports when controlled for endogeneity.

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