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Boosting Manufacturing Firms' Exports? The role of trade facilitation in Africa

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  • Hoekstra, Ruth
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    Abstract

    Facilitating trade is essential for Africa's economic development and further integration into the world economy, as business in Africa still suffers from behind-the-border barriers to trade. Using firm level data from the World Bank's Enterprise surveys covering more than 6,500 manufacturing firms, this paper empirically investigates the determinants of African firms' export decisions with a special focus on trade facilitation measures like the energy or telecommunications infrastructure. Overall, trade facilitation can increase African firms' probability to participate in international trade. Furthermore, lower trade barriers are associated with a higher propensity to export, i.e. stimulate the growth of exports.

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    Bibliographic Info

    Paper provided by Institut fuer Entwicklungsforschung und Entwicklungspolitik, Ruhr-Universitaet Bochum in its series IEE Working Papers with number 197.

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    Length: 26 pages
    Date of creation: 2013
    Date of revision:
    Handle: RePEc:bom:ieewps:197

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    Postal: Institute of Development Research and Development Policy, Ruhr University Bochum, Universitaetsstr. 150, D-44801 Bochum, Germany
    Phone: +49.234.32-22418
    Fax: +49.234.3214-294
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    Web page: http://www.development-research.org/
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    Related research

    Keywords: Trade facilitation; Trade barriers; Africa; Firm-level data; Export probability;

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    1. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, Econometric Society, vol. 71(6), pages 1695-1725, November.
    2. Edwards, Lawrence & Balchin, Neil, 2008. "Trade related business climate and manufacturing export performance in Africa: A firm-level analysis," MPRA Paper 32863, University Library of Munich, Germany.
    3. John S. Wilson & Catherine L. Mann & Tsunehiro Otsuki, 2005. "Assessing the Benefits of Trade Facilitation: A Global Perspective," The World Economy, Wiley Blackwell, Wiley Blackwell, vol. 28(6), pages 841-871, 06.
    4. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 42(3), pages 691-751, September.
    5. Andrew B. Bernard & Jonathan Eaton & J. Bradford Jensen & Samuel Kortum, 2003. "Plants and Productivity in International Trade," American Economic Review, American Economic Association, American Economic Association, vol. 93(4), pages 1268-1290, September.
    6. Djankov, Simeon & Freund, Caroline & Pham, Cong S., 2006. "Trading on time," Policy Research Working Paper Series 3909, The World Bank.
    7. Francis Teal & Måns Söderbom & Neil Rankin, 2005. "Exporting from manufacturing firms in Sub-Saharan Africa," Economics Series Working Papers, University of Oxford, Department of Economics GPRG-WPS-036, University of Oxford, Department of Economics.
    8. Paul Collier & Marcel Fafchamps & Francis Teal & Stefan Dercon, 2002. "Do African Manufacturing Firms Learn from Exporting?," Economics Series Working Papers, University of Oxford, Department of Economics WPS/2002-09, University of Oxford, Department of Economics.
    9. Eifert, Benn & Gelb, Alan & Ramachandran, Vijaya, 2008. "The Cost of Doing Business in Africa: Evidence from Enterprise Survey Data," World Development, Elsevier, Elsevier, vol. 36(9), pages 1531-1546, September.
    10. Hainz, Christa & Nabokin, Tatjana, 2009. "Access to versus Use of Loans: What are the True Determinants of Access?," Proceedings of the German Development Economics Conference, Frankfurt a.M. 2009, Verein für Socialpolitik, Research Committee Development Economics 12, Verein für Socialpolitik, Research Committee Development Economics.
    11. M�ns S–derbom & Francis Teal, 2003. "Are Manufacturing Exports the Key to Economic Success in Africa?," Journal of African Economies, Centre for the Study of African Economies (CSAE), Centre for the Study of African Economies (CSAE), vol. 12(1), pages 1-29, March.
    12. Iwanow, Tomasz & Kirkpatrick, Colin, 2009. "Trade Facilitation and Manufactured Exports: Is Africa Different?," World Development, Elsevier, Elsevier, vol. 37(6), pages 1039-1050, June.
    13. Freund, Caroline & Rocha, Nadia, 2010. "What constrains Africa's exports ?," Policy Research Working Paper Series 5184, The World Bank.
    14. Johannes Van Biesebroeck, 2003. "Exporting Raises Productivity in Sub-Saharan African Manufacturing Plants," NBER Working Papers 10020, National Bureau of Economic Research, Inc.
    15. Portugal-Perez, Alberto & Wilson, John S., 2012. "Export Performance and Trade Facilitation Reform: Hard and Soft Infrastructure," World Development, Elsevier, Elsevier, vol. 40(7), pages 1295-1307.
    16. Correa, Paulo & Dayoub, Mariam & Francisco, Manuela, 2007. "Identifying supply-side constraints to export performance in Ecuador : an exercise with Investment Climate Survey data," Policy Research Working Paper Series 4179, The World Bank.
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