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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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  • Portugal-Perez, Alberto & Wilson, John S., 2009. "Why trade facilitation matters to Africa," World Trade Review, Cambridge University Press, vol. 8(03), pages 379-416, July.
  • Handle: RePEc:cup:wotrrv:v:8:y:2009:i:03:p:379-416_00
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    Cited by:

    1. Gamberoni, Elisa & Lanz, Rainer & Piermartini, Roberta, 2010. "Timeliness and contract enforceability in intermediate goods trade," Policy Research Working Paper Series 5482, The World Bank.
    2. Sebastián Sáez, 2010. "Trade in Services Negotiations : A Guide for Developing Countries," World Bank Publications, The World Bank, number 2481, June.
    3. Salvador Gil-Pareja & Rafael Llorca-Vivero & José Martínez-Serrano, 2015. "The Uneven Impact of Continental Boundaries on Trade," Open Economies Review, Springer, vol. 26(2), pages 237-257, April.
    4. Patrik Tingvall & Andreas Poldahl, 2012. "Determinants of Firm R&D: The Role of Relationship-Specific Interactions for R&D Spillovers," Journal of Industry, Competition and Trade, Springer, vol. 12(4), pages 395-411, December.
    5. 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.
    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;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 149(3), pages 505-535, September.
    7. Daniel Bromley & Jeremy Foltz, 2011. "Sustainability under siege: Transport costs and corruption on West Africa's trade corridors," Natural Resources Forum, Blackwell Publishing, vol. 35, pages 32-48, February.
    8. 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.
    9. Noh, Bobae & Heshmati, Almas, 2017. "Does Official Development Assistance Affect Donor’s Export? Case of Korea," GLO Discussion Paper Series 9, Global Labor Organization (GLO).
    10. 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.
    11. 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 (IfW), vol. 6, pages 1-33.
    12. Lawrence Edwards & Neil Rankin, 2016. "Is Africa integrating? Evidence from product markets," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 25(2), pages 266-289, March.
    13. Jaime DE MELO & Yvonne TSIKATA, 2014. "Regional integration in Africa: Challenges and prospects," Working Papers P93, FERDI.
    14. repec:afe:journl:v:19:y:2017:i:1:p:1-26 is not listed on IDEAS
    15. Eberhard-Ruiz, Andreas & Calabrese, Linda, 2018. "Trade facilitation, transport costs and the price of trucking services in East Africa," MPRA Paper 87150, University Library of Munich, Germany.
    16. Inmaculada Martínez-Zarzoso & Felicitas Nowak-Lehmann & M. D. Parra & Stephan Klasen, 2014. "Does Aid Promote Donor Exports? Commercial Interest versus Instrumental Philanthropy," Kyklos, Wiley Blackwell, vol. 67(4), pages 559-587, November.
    17. repec:mth:ber888:v:7:y:2017:i:2:p:270-281 is not listed on IDEAS
    18. Velea, Irina & Cadot, Olivier & Wilson, John S., 2010. "Do private inspection programs affect trade facilitation ?," Policy Research Working Paper Series 5515, The World Bank.
    19. World Bank, 2010. "Uruguay - Trade and Logistics : An Opportunity - Main Report," World Bank Other Operational Studies 2962, The World Bank.

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