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National Trade Policies and Smuggling in Africa: The Case of The Gambia and Senegal

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  • Golub, Stephen S.
  • Mbaye, Ahmadou Aly
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    Abstract

    Summary Much of inter-regional trade in Africa is unrecorded and consists of smuggling. The Gambia is almost wholly enclosed within Senegal, yet official trade statistics show almost no trade between the two countries, failing to capture large-scale smuggling. Smuggling reflects pre-colonial traditional trading relationships, the artificial nature of borders created in the colonial era, and the disparities in trade policies between the two countries following independence, inducing large cross-border price differentials for goods. This paper documents the magnitude of trade protection in the two countries, the resulting price differences, and estimates the volume of smuggling.

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    File URL: http://www.sciencedirect.com/science/article/B6VC6-4TR97SS-4/2/0cc9ea8ea952dac994446474920cc1ae
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    Bibliographic Info

    Article provided by Elsevier in its journal World Development.

    Volume (Year): 37 (2009)
    Issue (Month): 3 (March)
    Pages: 595-606

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    Handle: RePEc:eee:wdevel:v:37:y:2009:i:3:p:595-606

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    Web page: http://www.elsevier.com/locate/worlddev

    Related research

    Keywords: smuggling international trade re-exports Africa Senegal The Gambia;

    References

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    1. Deardorff, A.V. & Stolper, W.F., 1988. "Effects Of Smuggling Under African Conditions: A Factual, Institutional And Analytic Discussion," Working Papers 230, Research Seminar in International Economics, University of Michigan.
    2. Yongzheng Yang & Sanjeev Gupta, 2005. "Regional Trade Arrangements in Africa," IMF Working Papers 05/36, International Monetary Fund.
    3. Bhagwati, Jagdish N & Hansen, Bent, 1973. "A Theoretical Analysis of Smuggling," The Quarterly Journal of Economics, MIT Press, vol. 87(2), pages 172-87, May.
    4. O'Connell, Stephen A, 1992. "Uniform Commercial Policy, Illegal Trade, and the Real Exchange Rate: A Theoretical Analysis," World Bank Economic Review, World Bank Group, vol. 6(3), pages 459-79, September.
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    Cited by:
    1. Nancy Benjamin & Ahmadou Aly Mbaye, 2012. "The Informal Sector in Francophone Africa : Firm Size, Productivity, and Institutions," World Bank Publications, The World Bank, number 9364, October.

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