|**Table 2 Data and Sources**|
|---|

|**Variable**|**Description**|**Year**|**Source**|
|---|---|---|---|
|**Bound Linesi**|Measures the percentage of bound lines in the tariff<br>schedule of economyi.|2002-<br>2004|MAcMAP (2007)|
|**Clearance**<br>**Timei**|Measures the number of days needed for import or<br>export clearance in economyi.|2006|Doing Business<br>(2007)|
|**Colonization**<br>**UKi**|Dummy variable equal to 1 only if economy i was<br>colonized by Great Britain.|NA|Mayer and Zignago<br>(2006)|
||Measures the state of e-government readiness of UN|||
|**E-Readinessi**|<br>Member States in economy i. It is a composite index<br>comprising<br>the<br>Web<br>measure<br>index,<br>the<br>Telecommunication Infrastructure index and the<br>HumanCapital index.|2005|United Nations<br>Government E-<br>Readiness (2007)|
|**Favoritismi**|Measures the extent of favoritism in economy i.<br>Based on responses to the question: “When deciding<br>upon policies and contracts, government officials<br>(1=usually<br>favor<br>well-connected<br>firms<br>and<br>individuals,<br>7=are<br>neutral<br>among<br>firms<br>and<br>individuals)”.|2004|Global<br>Competitiveness<br>Report (2005)|
|**GDP**<br>**Exporter**|GDP at purchaser's prices is the sum of gross value<br>added by all resident producers in the economy plus<br>any product taxes and minus any subsidies not<br>included in the value of the products. Data are in<br>current U.S. dollars. Dollar figures for GDP are<br>converted from domestic currencies using single year<br>official exchange rates.|2004|World Bank,<br>World<br>Development<br>Indicators (2007)|
|**GDP**<br>**Importer**|GDP at purchaser's prices is the sum of gross value<br>added by all resident producers in the economy plus<br>any product taxes and minus any subsidies not<br>included in the value of the products. Data are in<br>current U.S. dollars. Dollar figures for GDP are<br>converted from domestic currencies using single year<br>official exchange rates.|2004|World Bank,<br>World<br>Development<br>Indicators (2007)|
|**Hidden**<br>**Barriersi**|Measures the extent of favoritism in economy i.<br>Based on responses to the question: “In your country,<br>hidden import barriers (that is, barriers other than<br>published tariffs and quotas) are (1 = an important<br>problem,7 = not an importantproblem)”.|2004|Global<br>Competitiveness<br>Report (2005)|
|**Importsijk**|Imports of economy i from economy j in sector k.<br>Aggregated at the HS 2 digit level and SITC 4 digit<br>level.|2002-<br>2004|MAcMAP (2007)|
|**Irreg. Paym.i**|Measures the extent of irregular payments in<br>economy i. Based on responses to the question: “In<br>your industry, how commonly would you estimate<br>that firms make undocumented extra payments or<br>bribes connected with import and export permits<br>(1=common,7=never occur)”.|2004|Global<br>Competitiveness<br>Report (2005)|
|**No. of**<br>**Agenciesi**|Counts the average number of border agencies<br>involved in imports or exports in economy i.|2006|Logistics<br>Perception Index<br>(2007)|
|**No.**<br>**Documentsi**|Counts the average number of documents needed for<br>imports or exports in economyi.|2006|Doing Business<br>(2007)|

34