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

Author

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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.

Suggested Citation

  • Edwards, Lawrence & Balchin, Neil, 2008. "Trade related business climate and manufacturing export performance in Africa: A firm-level analysis," MPRA Paper 32863, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:32863
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    References listed on IDEAS

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    Cited by:

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    2. Iwanow, Tomasz & Kirkpatrick, Colin, 2009. "Trade Facilitation and Manufactured Exports: Is Africa Different?," World Development, Elsevier, vol. 37(6), pages 1039-1050, June.
    3. Sonia Mukherjee, "undated". "The Role of Services in Enhancing Indian Manufacturing Exports: A Firm Level Analysis, 2000-01 to 2011-12," Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi Discussion Papers 15-08, Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi, India.
    4. Hoekstra, Ruth, 2013. "Boosting Manufacturing Firms' Exports? The role of trade facilitation in Africa," IEE Working Papers 197, Ruhr University Bochum, Institute of Development Research and Development Policy (IEE).
    5. Portugal-Perez, Alberto & Wilson, John S., 2008. "Why trade facilitation matters to Africa ?," Policy Research Working Paper Series 4719, The World Bank.
    6. Bianka Dettmer & Andreas Freytag & Peter Draper, 2014. "Air Cargo beyond Trade Barriers in Africa," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 29, pages 95-138.
    7. Berulava George, 2011. "Services Inputs and Export Performance of Manufacturing Firms in Transition Economies," EERC Working Paper Series 11/17e, EERC Research Network, Russia and CIS.
    8. Florian Misch & Norman Gemmell & Richard Kneller, 2014. "Using surveys of business perceptions as a guide to growth-enhancing fiscal reforms," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 22(4), pages 683-725, October.
    9. Florian Misch & Norman Gemmell & Richard Kneller, 2014. "Using surveys of business perceptions as a guide to growth-enhancing fiscal reforms," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 22(4), pages 683-725, October.

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    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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