Glass Barriers sampling frame is an exhaustive list of shipment crossings, the sample was meant to be representative of small-scale cross-border trade crossings rather than crossers.<sup>6</sup> The IDIs contain detailed information on both crossers (demographics, education, past experiences as a trader/broker, perception of challenges, etc.) and crossings (goods transported, purchase value, selling price, etc.).

# 3. Overview of the Border Economy

## Definition of the population of interest

Small-scale cross-border trade (SSCBT) is an elusive concept. Different definitions have been used in the literature,<sup>7</sup> different rules apply depending on the country,<sup>8</sup> the value and quantity of goods traded per crossing may vary from one checkpoint to the next and SSCBT hides a variety of actors. Subsequently, we need develop an alternative, unified definition of SSCBT.

Based on field observations and stakeholder interviews, the population of interest shall be defined along the following criteria in this study:

- **People who deal with authorities** . These comprise: (i) traders who do not hire brokers and thus pay taxes and fees and interact with border authorities in general themselves; and (ii) brokers who do that on behalf of traders.<sup>9</sup> Transporters who do not act as brokers and traders who do not interact with authorities are not included in the population of interest. This criterion is meant to capture those who are the most knowledgeable about border-crossing processes and most directly affected by border conditions. In what follows, the population of interest shall be referred to as “traders and brokers” or “SSCBTers.”

- **People involved in “small-scale” trade** —as traders or brokers—i.e., in the trade of goods<sup>10</sup> that cross the border in man-powered vehicles or vehicles with fewer than four wheels. All the checkpoints selected for this study indeed have clear (informal) rules to

> 6 For instance, the “share of crossers who have ever experienced a confiscation” should strictly speaking be stated as the “share of crossings carried out by a crosser who has ever experienced a confiscation.” The sampling design thus allows a direct interpretation of a phenomenon in terms of economic importance in small-scale cross-border trade. 7 UN Women (2012) considers that “all revenue-generating cross-border commercial activities with a daily transaction value of less than 100 U.S. dollars (USD) per trader” qualifies as “small-scale” and that traders are “informal” if they are not registered and pay no income taxes, although they might pay export or import taxes, and pass through official border crossings with appropriate travel documentation. World Bank (2011) defines informal trade as “unorganized small-scale trade which does not appear in the customs record.” It may however be “official” in the sense that “traders go through official border posts, pay a crossing fee to the immigration office, and if processed appropriately pay a duty on imports” (ibid.).

> 8 In the Mekong sub-region, if traders are not registered, their informal status disqualifies them from a full customs declaration using the ASEAN Customs Declaration Document (ACDD). Typically, these unregistered traders will instead use a modified form, called “Customs Declaration Form for Retailed Declarants” (or “Customs Regime Form 44”) in Lao PDR. In Cambodia, small import transactions with a value equal to or greater than USD 100 are required to pay excise tax and duty, make a verbal customs declaration and fill out a simplified customs form.

9 Brokers and traders who are exempted from taxes and fees but would interact with authorities if controlled are part of our study population.

10 Preliminary observations and stakeholder interviews revealed that the trade of services (hairdressers, housekeeping, etc.) constitutes a very marginal activity at the studied checkpoints. We therefore exclude such traders from the population of interest.

Cambodia and Lao PDR 6