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Why trade facilitation matters to Africa

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  • PORTUGAL-PEREZ, ALBERTO
  • WILSON, JOHN S.

Abstract

This paper reviews data and research on trade costs for Sub-Saharan African countries. It focuses on: border-related costs, transport costs, costs related to behind-the border issues, and the costs of compliance with rules of origin specific to preferential trade agreements. Trade costs are, on average, higher for African countries than for other developing countries. Using gravity-model estimates, the authors compute ad-valorem equivalents of improvements in trade indicators for a sample of African countries. The evidence suggests that the gains for African exporters from improving the trade logistics half-way to the level in South Africa is more important than a substantive cut in tariff barriers. As an example, improving logistics in Ethiopia half-way to the level in South Africa would be roughly equivalent to a 7.5 percent cut in tariffs faced by Ethiopian exporters.

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Bibliographic Info

Article provided by Cambridge University Press in its journal World Trade Review.

Volume (Year): 8 (2009)
Issue (Month): 03 (July)
Pages: 379-416

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Handle: RePEc:cup:wotrrv:v:8:y:2009:i:03:p:379-416_00

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References

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  1. Jean-François Arvis & Gaël Raballand & Jean-François Marteau, 2010. "The Cost of Being Landlocked : Logistics Costs and Supply Chain Reliability," World Bank Publications, The World Bank, number 2489, July.
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  6. Supee Teravaninthorn & Gaël Raballand, 2009. "Transport Prices and Costs in Africa : A Review of the International Corridors," World Bank Publications, The World Bank, number 6610, July.
  7. Jan Willem Gunning & Paul Collier, 1999. "Explaining African Economic Performance," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 64-111, March.
  8. Cadot, Olivier & de Melo, Jaime & Portugal-Perez, Alberto, 2006. "Rules of origin for preferential trading arrangements : implications for the ASEAN Free Trade Area of EU and U.S. experience," Policy Research Working Paper Series 4016, The World Bank.
  9. Fisman, Raymond & Wei, Shang-Jin, 2001. "Tax Rates and Tax Evasion: Evidence from 'Missing Imports' in China," CEPR Discussion Papers 3089, C.E.P.R. Discussion Papers.
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  11. Kee, Hiau Looi & Nicita, Alessandro & Olarreaga, Marcelo, 2006. "Estimating Trade Restrictiveness Indices," CEPR Discussion Papers 5576, C.E.P.R. Discussion Papers.
  12. Michael Faye & John McArthur & Jeffrey Sachs & Thomas Snow, 2004. "The Challenges Facing Landlocked Developing Countries," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 5(1), pages 31-68.
  13. Simeon Djankov & Caroline Freund & Cong S. Pham, 2010. "Trading on Time," The Review of Economics and Statistics, MIT Press, vol. 92(1), pages 166-173, February.
  14. Anne-Célia Disdier & Lionel Fontagné & Mondher Mimouni, 2007. "The Impact of Regulations on Agricultural Trade: Evidence from SPS and TBT Agreements," Working Papers 2007-04, CEPII research center.
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  17. Matthias Helble & Ben Shepherd & John S. Wilson, 2009. "Transparency and Regional Integration in the Asia Pacific," The World Economy, Wiley Blackwell, vol. 32(3), pages 479-508, 03.
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Citations

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Cited by:
  1. Behar, Alberto & Edwards, Lawrence, 2011. "How integrated is SADC ? trends in intra-regional and extra-regional trade flows and policy," Policy Research Working Paper Series 5625, The World Bank.
  2. Bromley, Daniel W. & Foltz, Jeremy D., 2010. "Sustainability under Siege: Transport Costs and Corruption on West Africa's Trade Corridors," Staff Paper Series 554, University of Wisconsin, Agricultural and Applied Economics.
  3. Alessandro Nicita & Valentina Rollo, 2013. "Tariff Preferences As A Determinant For Exports From Sub-Saharan Africa," UNCTAD Blue Series Papers 60, United Nations Conference on Trade and Development.
  4. Velea, Irina & Cadot, Olivier & Wilson, John S., 2010. "Do private inspection programs affect trade facilitation ?," Policy Research Working Paper Series 5515, The World Bank.
  5. Tingvall, Patrik Gustavsson & Poldahl, Andreas, 2011. "Determinants of Firm R&D: The Role of Relationship-specific Interactions for R&D Spillovers," Working Paper Series in Economics and Institutions of Innovation 251, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  6. Felicitas Nowak-Lehmann & Inmaculada Martínez-Zarzoso & Dierk Herzer & Stephan Klasen & Adriana Cardozo, 2013. "Does foreign aid promote recipient exports to donor countries?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 149(3), pages 505-535, September.
  7. Persson, Maria, 2011. "From trade preferences to trade facilitation: Taking stock of the issues," Economics Discussion Papers 2011-23, Kiel Institute for the World Economy.
  8. Jaime de MELO & Yvonne TSIKATA, 2014. "Regional integration in Africa: Challenges and prospects," Working Papers P93, FERDI.
  9. World Bank, 2010. "Uruguay - Trade and Logistics : An Opportunity - Main Report," World Bank Other Operational Studies 2962, The World Bank.
  10. Hoekman, Bernard & Wilson, John S., 2010. "Aid for trade : building on progress today for tomorrow's future," Policy Research Working Paper Series 5361, The World Bank.
  11. Gamberoni, Elisa & Lanz, Rainer & Piermartini, Roberta, 2010. "Timeliness and contract enforceability in intermediate goods trade," Policy Research Working Paper Series 5482, The World Bank.
  12. Sebastián Sáez, 2010. "Trade in Services Negotiations : A Guide for Developing Countries," World Bank Publications, The World Bank, number 2481, July.
  13. Lawrence Edwards & Neil Rankin, 2012. "Is Africa Integrating? Evidence from Product Markets," Working Papers 292, Economic Research Southern Africa.

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