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Assessing the Impact of Development Cooperation: the Case of African Growth and Opportunity Act (AGOA) and U.S. Imports from Sub-Saharan Africa

Author

Listed:
  • Bichaka Fayissa
  • Badassa Tadasse

Abstract

We evaluate the impact of the unilateral trade policy concession known as African Growth and Opportunity Act (AGOA) on U.S. imports from eligible Sub-Saharan African (SSA) countries. Using U.S.-SSA countries’ trade data that span the years 1991-2006, we find that AGOA has contributed to the initiation of new and the intensification of existing U.S. imports in both manufactured and non-manufactured goods and several product categories. However, compared to its import initiation impact, the import intensification effect of the Act has been marginal. Our results have important policy implication for further intensification of African exports to the U.S. markets.

Suggested Citation

  • Bichaka Fayissa & Badassa Tadasse, 2007. "Assessing the Impact of Development Cooperation: the Case of African Growth and Opportunity Act (AGOA) and U.S. Imports from Sub-Saharan Africa," Working Papers 200719, Middle Tennessee State University, Department of Economics and Finance.
    • Handle: RePEc:mts:wpaper:200719
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    File URL: http://capone.mtsu.edu/berc/working/AGOA-RePEC.pdf
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    More about this item

    Keywords

    AGOA; Trade Agreements; Trade Initiation; Trade Intensification;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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