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The impacts of institutional quality and infrastructure on overall and intra-Africa trade

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  • Jiang, Yushi
  • Borojo, Dinkneh Gebre

Abstract

The authors examine the impacts of quality of institutions, border and transport efficiency, physical and communication infrastructure on overall and intra-Africa trade covering 44 African countries and their 173 trade partners for the periods 2000-2014. Aggregate indicators are derived for quality of economic institutions, border and transport efficiency, physical and communication infrastructure using principal component analysis. The findings disclose that intra-Africa and overall Africa's trade robustly determined by quality of institutions, border and transport efficiency, physical and communication infrastructure. The estimates also indicate that the marginal effect of the quality of institutions, physical and communication infrastructure on trade flow appears to be increasing in GDP per capita. In contrast, the marginal effect of border and transport efficiency on trade decreases in GDP per capita. The authors compute simulation of improving each indicator to the best performer in the sample. The findings are robust to estimation method conducted to account for potential endogeneity.

Suggested Citation

  • Jiang, Yushi & Borojo, Dinkneh Gebre, 2018. "The impacts of institutional quality and infrastructure on overall and intra-Africa trade," Economics Discussion Papers 2018-75, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwedp:201875
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    References listed on IDEAS

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    Cited by:

    1. Abban, Stanley, 2020. "The impact of institutions and infrastructure on intra-regional trade: The Economic Community of West African States," MPRA Paper 104382, University Library of Munich, Germany.

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    More about this item

    Keywords

    Trade flow; transport efficiency; quality of institutions; physical and communication infrastructure; gravity model; African countries;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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