**Table 7. Effect of customs clearance time on imports by country type**

||D<br>_Clearance_|ependent varia<br>_time measured i_|ble is first‐diff. i<br>_n days ‐ 2007‐20_|IV esti<br>n log import val<br>_12 period_|mation<br>ue at firm‐HS6<br>_Clearance_|product‐origin c<br>_time measured i_|ountry‐year lev<br>_n hours ‐ 2010‐2_|el<br>_012 period_|
|---|---|---|---|---|---|---|---|---|
||(1)|(2)|(3)|(4)|(5)|(6)|(7)|(8)|
|First‐diff. in median clearance time|0.577**|0.573**|0.332|0.323|0.041***|0.042***|0.026*|0.028*|
||(0.283)|(0.286)|(0.285)|(0.288)|(0.015)|(0.015)|(0.014)|(0.014)|
|First‐diff. in median clearance time * Preferential|||||||||
|trading partner dummy|‐2.292***||||‐0.093***||||
||(0.375)||||(0.019)||||
|First‐diff. in median clearance time * EU|||||||||
|preferential trading partner dummy||‐2.466***||||‐0.098***|||
|||(0.388)||||(0.020)|||
|First‐diff. in median clearance time * CEFTA|||||||||
|preferential trading partner or Turkey dummy||‐1.091*||||‐0.068**|||
|||(0.661)||||(0.031)|||
|First‐diff. in median clearance time * High‐income|||||||||
|country dummy|||‐1.997***||||‐0.076***||
||||(0.367)||||(0.018)||
|First‐diff. in median clearance time * High‐income|||||||||
|EU country dummy||||‐2.152***||||‐0.084***|
|||||(0.376)||||(0.019)|
|First‐diff. in median clearance time * High‐income|||||||||
|non‐EU country dummy||||‐0.173||||0.000|
|||||(0.746)||||(0.037)|
|Firm*year fixed effects|Yes|Yes|Yes|Yes|Yes||Yes|Yes|
|HS6 product*origin country*year fixed effects|Yes|Yes|Yes|Yes|Yes||Yes|Yes|
|Observations|200,281|200,281|200,281|200,281|84,298|84,298|84,298|84,298|
|R‐squared|0.229|0.212|0.256|0.243|0.321|0.312|0.355|0.337|
|F‐statistic from first‐stage regression<br>First‐stage coefficient on first‐difference in|206|138|203|138|134|90|134|89|
|median allocation to red channel|0.085***|0.085***|0.073***|0.073***|2.211***|2.211***|2.095***|2.095***|
||(0.007)|(0.007)|(0.006)|(0.006)|(0.217)|(0.217)|(0.199)|(0.199)|
|First‐stage coefficient on first‐diff. in median|||||||||
|allocation to red channel * Corresponding dummy|‐0.021|‐0.021|‐0.004|‐0.007|‐0.323|‐0.341|‐0.168|‐0.196|
||(0.008)|(0.008)|(0.007)|(0.007)|(0.258)|(0.264)|(0.247)|(0.250)|
|First‐stage coefficient on first‐diff. in median|||||||||
|allocation to red channel * Corresponding other|||||||||
|dummy||‐0.018||0.040||‐0.202||0.205|
|||(0.013)||(0.019)||(0.451)||(0.601)|
|Proportion of observations with first country|||||||||
|dummy=1|75.4%|63.8%|68.0%|61.7%|73.1%|61.79%|66.6%|59.6%|
|Proportion of observations with second country|||||||||
|dummy=1||11.6%||6.3%||11.28%||6.9%|

Notes: Robust standard errors in parentheses. ***, **, and * indicate significance at 1%, 5%, and 10% confidence levels, respectively.

# **6.2 Heterogeneity across Product Type**

Next, we allow the effect of changes in customs clearance time on import growth to differ across products depending on their sensitivity to time in transit either because of physical depreciation (e.g., fresh agricultural and food products with a short shelf-life before they are rotten) or because of their use as inputs in production processes that may or may not be part of global supply chains (e.g., cloth needed for apparel manufacturing). We consider five key measures of time-sensitivity used in the recent trade literature as variable �: the measure used by Freund, Djankov, and Pham (2010) that encompasses products with short shelf-life and products identified as parts and components by Hummels (2001), and its two sub-components separately, 33