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Who profits from trade facilitation initiatives? Implications for African countries

Author

Listed:
  • Bernard Hoekman

    (European University Institute
    CEPR)

  • Ben Shepherd

    (Developing Trade Consultants)

Abstract

Extensive research has demonstrated the existence of large potential welfare gains from measures to facilitate trade — reduce trade costs — for African countries in particular. However, concerns have been expressed by policymakers regarding the distribution of the benefits and costs of trade facilitation. We use firm-level data for a large number of developing countries, in Africa and the rest of the world, to assess the claims that it will be mostly large firms that benefit from trade facilitation and that trade facilitation may result in a deterioration of the trade balance. We find no evidence for either argument. Our results suggest that trade facilitation can be beneficial in a range of countries, including those that are primarily involved in value chains as suppliers.

Suggested Citation

  • Bernard Hoekman & Ben Shepherd, 2015. "Who profits from trade facilitation initiatives? Implications for African countries," Journal of African Trade, Springer, vol. 2(1), pages 51-70, March.
    • Handle: RePEc:spr:jouafr:v:2:y:2015:i:1:d:10.1016_j.joat.2015.08.001
    DOI: 10.1016/j.joat.2015.08.001
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    More about this item

    Keywords

    Trade facilitation; Trade costs; WTO; International value chains; Firm-level data;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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