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Trade facilitation and social welfare in Africa

Author

Listed:
  • Daniel Sakyi

    (Kwame Nkrumah University of Science and Technology)

  • Isaac Bonuedi

    (University of Bonn)

  • Eric Evans Osei Opoku

    (City University of Hong Kong)

Abstract

Improving social welfare in the developing world remains a top priority on the global development agenda, as policymakers and international development partners worldwide strive to meet the Sustainable Development Goals by 2030. Using data on 40 African countries over the period 2010–2015, this paper investigates the extent to which trade facilitation contributes to improving social welfare in Africa. To do so, we construct three indices of trade facilitation capturing infrastructure, institutions, and market efficiency from several primary indicators. With regard to social welfare, we use education (net primary school enrollment rate), child health (under-5 mortality rate), population health (life expectancy), and human development (human development index). The system-GMM estimation technique is employed in order to address the problem of endogeneity. The main finding is that better trade facilitation results in improved social welfare outcomes. Our findings suggest that effective trade facilitation reforms, targeted particularly at improving infrastructure, institutions, and market efficiency, will likely be associated with improvements of social welfare in Africa.

Suggested Citation

  • Daniel Sakyi & Isaac Bonuedi & Eric Evans Osei Opoku, 2018. "Trade facilitation and social welfare in Africa," Journal of African Trade, Springer, vol. 5(1), pages 35-53, March.
    • Handle: RePEc:spr:jouafr:v:5:y:2018:i:1:d:10.1016_j.joat.2018.08.001
    DOI: 10.1016/j.joat.2018.08.001
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    References listed on IDEAS

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    Cited by:

    1. Olayinka Idowu Kareem, 2025. "The determinants of export promotion in Africa: evidence from the implemented trade facilitation measures," International Economics and Economic Policy, Springer, vol. 22(1), pages 1-26, February.
    2. Stéphane Mbiankeu Nguea & Issidor Noumba, 2024. "The Contribution of Economic Complexity to Social Welfare in Africa," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 20349-20369, December.
    3. Daniel Sakyi & Sylvanus Kwaku Afesorgbor, 2019. "The Effects of Trade Facilitation on Trade Performance in Africa," Journal of African Trade, Springer, vol. 6(1), pages 1-15, December.

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    More about this item

    Keywords

    Trade facilitation; Social welfare; System-GMM; Africa;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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