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Trade Facilitation and Manufactured Exports: Is Africa Different?

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  • Iwanow, Tomasz
  • Kirkpatrick, Colin
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    Abstract

    Summary Trade facilitation, defined as reducing the transaction costs associated with the enforcement, regulation and administration of trade policies, has been at the forefront of discussions on policy measures for reducing the costs of exporting and importing in developing countries. This study uses a new panel dataset for 124 developed and developing countries, available for the period 2003-04, to assess the impact of trade facilitation and other trade-related institutional constraints on manufacturing export performance with particular reference to Africa. We estimate a standard gravity model augmented with trade facilitation, regulatory quality, and infrastructure indicators. Our results show that trade facilitation reforms could contribute to improve export performance in Africa, but other reforms including the quality of the regulatory environment and the quality of the basic transport and communications infrastructure, are also needed. Furthermore, improvements in on-the-border and behind-the-border policies yield a higher return in terms of increasing manufacturing export performance in African countries than in the rest of the world.

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    Bibliographic Info

    Article provided by Elsevier in its journal World Development.

    Volume (Year): 37 (2009)
    Issue (Month): 6 (June)
    Pages: 1039-1050

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    Handle: RePEc:eee:wdevel:v:37:y:2009:i:6:p:1039-1050

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

    Related research

    Keywords: trade facilitation export performance gravity model Africa regulatory (institutional) quality;

    References

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    Cited by:
    1. Hoekstra, Ruth, 2013. "Boosting Manufacturing Firms' Exports? The role of trade facilitation in Africa," IEE Working Papers 197, Institut fuer Entwicklungsforschung und Entwicklungspolitik, Ruhr-Universitaet Bochum.
    2. Königer, Jens & Busse, Matthias & Hoekstra, Ruth, 2011. "The Impact of Aid for Trade Facilitation on the Costs of Trading," Proceedings of the German Development Economics Conference, Berlin 2011 48, Verein für Socialpolitik, Research Committee Development Economics.
    3. Persson, Maria, 2012. "From trade preferences to trade facilitation: Taking stock of the issues," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 6(17), pages 1-33.
    4. World Bank, 2010. "Uruguay - Trade and Logistics : An Opportunity - Main Report," World Bank Other Operational Studies 2962, The World Bank.

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