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Trade related business climate and manufacturing export performance in Africa: A firm-level analysis

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  • Edwards, Lawrence
  • Balchin, Neil

Abstract

Africa continues to be marginalised in world trade of manufactured goods, despite reductions in tariffs and non-tariff barriers. This paper investigates whether high business and trade costs associated with Africa’s trade-related infrastructure, trade institutions and the regulatory environment have contributed towards its mediocre trade performance. The paper focuses on eight African countries - Egypt, Kenya, Madagascar, Mauritius, Morocco, South Africa, Tanzania and Zambia - using the World Bank’s investment climate surveys. The results of the study suggest that the business climate, as measured using principal components for micro-level supply constraints, macroeconomic conditions and the legal environment, is closely associated with firm-level export propensity. Improvements in domestic policy may therefore have a considerable positive impact on manufacturing export performance in Africa.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 32863.

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Date of creation: 2008
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Publication status: Published in Journal of Development Perspectives 1.4(2008): pp. 67-92
Handle: RePEc:pra:mprapa:32863

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Related research

Keywords: Business climate; Africa; manufacturing firms; export performance;

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References

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  18. Fernandes, Ana Margarida, 2006. "Firm Productivity in Bangladesh Manufacturing Industries," Policy Research Working Paper Series 3988, The World Bank.
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Citations

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Cited by:
  1. Iwanow, Tomasz & Kirkpatrick, Colin, 2009. "Trade Facilitation and Manufactured Exports: Is Africa Different?," World Development, Elsevier, Elsevier, vol. 37(6), pages 1039-1050, June.
  2. Misch, Florian & Gemmell, Norman & Kneller, Richard, 2013. "Using surveys of business perceptions as a guide to growth-enhancing fiscal reforms," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 13-012, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  3. 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.
  4. Bianka Dettmer & Andreas Freytag & Peter Draper, 2013. "Check-in, departure and arrival times: Air cargo in Southern Africa?," Jena Economic Research Papers 2013-018, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.

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