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Jerónimo Carballo, Georg Schaur and Christian Volpe Martincus

Trade facilitation policies aim to simplify administrative processes and accelerate the handling of shipments across borders. Recent research shows that these policies have substantial effects on trade flows. In this chapter, the authors discuss what the existing evidence for trade implies for the provision of transportation services. In addition, they make use of a particular policy change, an upgrade to a new transit trade regime, to illustrate the many direct and indirect linkages between trade facilitation and transportation. These multiple connections imply that a well-functioning transportation sector is important in realizing the full potential of trade facilitation policies. The authors’ conceptual and empirical analyses show that, despite an increase in demand for transportation services, the effect of trade facilitation on freight rates and the underlying transportation sector is far from obvious. This calls for future research to examine equilibrium adjustment channels to trade facilitation policies in the transportation sector.

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Peter A.G van Bergeijk, Selwyn J.V. Moons and Christian Volpe Martincus

Based on suggestions for further research by individual authors in the chapters of the Handbook and an extended analysis of recent developments in the field, the final chapter by Peter van Bergeijk, Selwyn Moons and Christian Volpe Martincus puts the growing importance of bilateral economic diplomacy research in the context of the emerging trend towards deglobalization. The chapter develops and discusses the academic agenda for bilateral economic diplomacy research pointing out the need to broaden the scope of existing research and exploring the agenda of microeconomic economic diplomacy research. Finally, the chapter focuses on the potential for economic diplomacy to reduce trade uncertainty and vulnerability to trade shocks.