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Endnotes

1US$ = United States dollar.

2East Asia here comprises 16 economies: Brunei Darussalam; Cambodia; PRC; Hong Kong, China; Indonesia; Republic of Korea; Lao People's Democratic Republic (PDR); Malaysia; Mongolia; Myanmar; Philippines; Singapore; Taipei,China; Thailand; Viet Nam; plus Japan.

3Source: Calculated from United Nations Comtrade data (S2, items-total).

4TEU stands for twenty-foot equivalent unit, a standard measure of shipping container size.

5In the Indonesian archipelago, where around 90% of external trade (and much of domestic trade) passes through ports, exporters seeking to distribute raw materials tend to follow the “trade follows the ships” principle: they are attracted to ports with shipping routes that best reach the desired markets (Patunru, Nurridzki, and Rivayani 2009). Regions where service-sector exports are more important tend to follow the “ships follow the trade” principle, whereby ships are routed to serve the desired regions.

6Landlocked countries are those that do not have access to an open sea. Some landlocked countries, such as Azerbaijan, Kazakhstan, or Turkmenistan have access to an inland sea, such as the Caspian.

7United Nations Conference on Trade and Development (UNCTAD) (2008) suggests that a multidimensional approach is needed to tackle these problems. This involves developing adequate national transport networks and efficient transit systems, promoting regional or subregional economic integration, and encouraging FDI in economic activities that are not distance-sensitive. For example, in 1995, the United Nations General Assembly endorsed the Global Framework for Transit Transport Cooperation between Land-locked and Transit Developing Countries and the Donor Community with a view to enhancing transit systems and enabling Land-locked and Developing Countries to reduce their marginalization from world markets.

8We define APEC Asia as including Singapore; Malaysia; Indonesia; Hong Kong, China; Taipei,China; Japan; Korea; Philippines; PRC; Thailand; and Viet Nam.

9In all but a few instances, border facilitation involves two countries.

10Released August 2008 (see https://www.gtap.agecon.purdue.edu/databases/v7/default.asp). See also Hertel (1997) for a complete description of the GTAP model.

11The trade cost values determined in Strutt, Stone, and Minor (2008) were mapped to the regional breakdown examined in this paper. Details of the mapping are available from the authors upon request.

12EU15 = Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden, United Kingdom.

13The Rest of APEC here consists of the Chile, Peru, Canada, Mexico, and the United States. Australia and New Zealand, also members of APEC are included in their own category while Russia is included in the rest of the world (ROW).

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    The views expressed in this paper are the views of the authors and do not necessarily reflect the views or policies of the Asian Development Bank Institute (ADBI), the Asian Development Bank (ADB), its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.

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