Algeria-Mali Trade

This paper estimates the volume of informal trade between Algeria and Mali and analyzes its determinants and mechanisms, using a multi-pronged methodology. First, the authors discuss how subsidy policies and the legal framework create incentives for informal trade across the Sahara. Second, the authors provide evidence of the importance of informal trade, drawing on satellite images and surveys with informal traders in Mali and Algeria. The authors estimate that the weekly turnover of informal trade fell from approximately United States (U.S.) 2 million dollars in 2011 to U.S. 0.74 million dollars in 2014, but continues to play a crucial role in the economies of northern Mali and southern Algeria. Profit margins of 20-30 percent on informal trade contribute to explaining the relative prosperity of northern Mali. The authors also show that official trade statistics are meaningless in this context, as they capture less than 3 percent of total trade. Finally, the authors provide qualitative evidence on informal trade actors and mechanisms for the most frequently traded products.

Bibliographic Details

Main Authors:	Bensassi, Sami, Brockmeyer, Anne, Pellerin, Matthieu, Raballand, Gael
Format:	Report biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2015-03-22
Subjects:	TARIFFS, PROFIT MARGINS, PRODUCTION, UNDERVALUATION, CHAMBERS OF COMMERCE, PASSENGERS, FOREIGN INVESTORS, VEHICLES, EXPORTS, TREND, GASOLINE, JOURNEY, INCENTIVES, DISTRIBUTION, SUBSIDY, TRAFFIC, TAX, ROUTES, TAKEOVER, PAYMENTS, QUALITY, INTERNATIONAL TRANSIT, DRIVERS, CUSTOMS CLEARANCE, TRADE AGREEMENTS, CUSTOMS DUTIES, VEHICLE, PREFERENTIAL TRADE AGREEMENTS, FISCAL POLICIES, TRADE IN GOODS, IMPORT DATA, TRADE BALANCE, FOREIGN TRADE, ROAD, CARGO, COSTS, TRANSPORT, EXCHANGE RATES, CUSTOMS, CONTAINERS, MONOPOLY, EXPORT VOLUME, CRITERIA, TRANSPORT OF GOODS, DEBT, PROFIT RATE, TRUE, HARMONIZED SYSTEM, IMPORTS, TRADE POLICY, PORTS, TRADE AGREEMENT, GROSS DOMESTIC PRODUCT, FUEL CONSUMPTION, ROUTE, FUELS, IMPORT DECLARATION, SUBSIDIES, TRANSIT TIMES, COLLECTED TARIFFS, INFRASTRUCTURE, TAXES, EXPORT VALUE, TRADE ROUTES, MANUFACTURING, TRADE VOLUME, CONSUMPTION, VALUE ADDED, TRADE BALANCES, TRAVEL, TRANSPORTATION, TRANSIT, POLICIES, CUSTOMS OFFICIALS, BORDER CROSSING, TRUCKS, SHIPPING, CONTRABAND, POLICE, TRUCK TRAFFIC, CARS, VALUE, CARGOES, CUSTOMS AUTHORITIES, IMPORT VALUES, MEANS OF TRANSPORT, PURCHASING POWER, POPULATION DENSITY, CONSUMERS, FUEL PRICES, EXPORT REVENUE, FOREIGN EXCHANGE, TRADE SURPLUS, ROADS, CAR, CROSSING, TRADE DATA, TRADE, ECONOMIC INTEGRATION, GDP, GOODS, COST OF TRANSPORT, SUPPLY CHAINS, BORDER MANAGEMENT, TRANSPORT ACTIVITY, CUSTOMS OFFICES, INTERNATIONAL AGREEMENT, PREFERENTIAL TRADE, TARIFF, FUEL, DISTRIBUTION NETWORK, SUPPLY, OVERVALUATION, CUSTOMS DUTY, REFRIGERATORS, TARIFF RATE, SODIUM, TRANSPORT COSTS, DIESEL, OUTCOMES, ROAD TRANSPORT, COMMODITY, IMPORT VALUE, CUSTOMS DECLARATIONS, TIRES, FREIGHT, PRICES, TONNAGE, STORAGE,
Online Access:	http://documents.worldbank.org/curated/en/2015/11/25485930/algeria-mali-trade-normality-informality https://hdl.handle.net/10986/23355
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