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What constrains Africa's exports?

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  • Freund, Caroline
  • Rocha, Nadia

Abstract

We examine the effects of transit, documentation, and ports and customs delays on Africa's exports. We find that transit delays have the most economically and statically significant effect on exports. A one day reduction in inland travel times leads to a 7 percent increase in exports. Put another way, a one day reduction in inland travel times translates into 1.5 percentage point decrease in all importing-country tariffs. In contrast, longer delays in the other areas have a far smaller impact on trade. We control for the possibility that greater trade leads to shorter delays in three ways. First, we examine the effect of trade times on exports of new products. Second, we evaluate the effect of delays in a transit country on the exports of landlocked countries. Third, we examine whether delays affect time-sensitive goods relatively more. We show that large transit delays are relatively more harmful because of high within-country variation.

Suggested Citation

  • Freund, Caroline & Rocha, Nadia, 2010. "What constrains Africa's exports?," WTO Staff Working Papers ERSD-2010-07, World Trade Organization (WTO), Economic Research and Statistics Division.
  • Handle: RePEc:zbw:wtowps:ersd201007
    DOI: 10.30875/7fb65b46-en
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    References listed on IDEAS

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    1. Daron Acemoglu & Simon Johnson & James A. Robinson, 2002. "Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(4), pages 1231-1294.
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    4. Carolyn L. Evans & James Harrigan, 2005. "Distance, Time, and Specialization: Lean Retailing in General Equilibrium," American Economic Review, American Economic Association, vol. 95(1), pages 292-313, March.
    5. Hummels, David, 2001. "Time As A Trade Barrier," Working papers 28701, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
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    More about this item

    Keywords

    trade facilitation; export times; transit delays; gravity models;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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