Analysis on the factors that affect AEO MRA

Abstract

The purpose of this study is to analyze the factors that affect AEO MRA for trade facilitation and trade security between two partner nations. Since the first MRA between US and New Zealand in 2007, AEO participant nations have formed actively MRA. This study uses the multiple logistic regression model to prove the empirical evidence, which is used when that data consist of a binary response and a set of explanatory variables for 63 AEO participant nations. The empirical results indicate that the probability of the formation of AEO MRA between pair of countries is higher

(i) the smaller economic market size, (ii) the higher export value to partner country, (iii) the longer import clearance time, (iv) the lower level of tariff and non-tariff barrier, (v) the safer IT support environment, (vi) the safer from terrorism threats.