Why Trade Facilitation Matters to Africa

This paper reviews data and research on trade costs for Sub-Saharan African countries. It focuses on: border-related costs, transport costs, costs related to behind-the border issues, and the costs of compliance with rules of origin specific to preferential trade agreements. Trade costs are, on average, higher for African countries than for other developing countries. Using gravity-model estimates, the authors compute ad-valorem equivalents of improvements in trade indicators for a sample of African countries. The evidence suggests that the gains for African exporters from improving the trade logistics half-way to the level in South Africa is more important than a substantive cut in tariff barriers. As an example, improving logistics in Ethiopia half-way to the level in South Africa would be roughly equivalent to a 7.5 percent cut in tariffs faced by Ethiopian exporters.

Bibliographic Details

Main Authors:	Portugal-Perez, Alberto, Wilson, John S.
Language:	English
Published:	Washington, DC: World Bank 2008-09
Subjects:	ABSOLUTE VALUE, ADMINISTRATIVE PROCEDURES, AGGREGATE IMPORTS, AGRICULTURAL PRODUCTS, AGRICULTURAL TRADE, AGRICULTURE, AIR, ANTI-DUMPING DUTIES, APPAREL, APPAREL EXPORTS, AVERAGE COSTS, BARRIERS TO TRADE, BENCHMARK, BILATERAL TRADE, BORDER CROSSING, BUSINESS ENVIRONMENT, CAR, CARRIERS, CARTELS, CITY TRANSPORT, COMPETITIVE MARKETS, COMPLIANCE COSTS, CONSUMER PREFERENCES, CURRENCY, CUSTOMS, CUSTOMS ADMINISTRATIONS, CUSTOMS CLEARANCE, CUSTOMS OFFICIALS, CUSTOMS PROCEDURES, DEBT, DECISION MAKING, DEVELOPED COUNTRIES, DEVELOPING COUNTRIES, DISTRIBUTION COSTS, DOMESTIC INDUSTRY, DOMESTIC MARKET, DOMESTIC PRODUCERS, DUMPING, ECONOMIC COOPERATION, ECONOMIC CRISIS, ECONOMIC DEVELOPMENT, ECONOMIC INTEGRATION, ECONOMIC PERFORMANCE, ECONOMIC RESEARCH, ECONOMICS, ECONOMIES OF SCALE, ELASTICITY, EMPIRICAL EVIDENCE, EMPIRICAL INVESTIGATIONS, EMPIRICAL RESEARCH, ENVIRONMENTAL, EXPORT COSTS, EXPORT DIVERSIFICATION, EXPORT GROWTH, EXPORT MARKETS, EXPORT OPPORTUNITIES, EXPORT PERFORMANCE, EXPORT PRICES, EXPORT PROCEDURES, EXPORT REVENUE, EXPORT SHARE, EXPORT SHARES, EXPORTERS, FINANCIAL CRISES, FINANCIAL CRISIS, FIXED COSTS, FOREIGN INVESTMENT, FOREIGN MARKET, FOREIGN MARKETS, FOREIGN TRADE, FREE TRADE, FREE TRADE AREA, FREIGHT, FREIGHT COSTS, FUEL, GDP, GLOBAL TRADE, GOVERNMENT REGULATION, GRAVITY EQUATION, GRAVITY ESTIMATES, GRAVITY MODEL, GRAVITY MODELS, HARMONIZATION OF RULES, HIGH TRANSPORT, HIGHWAY, HIGHWAY NETWORK, HIGHWAYS, IMPACT OF TRADE, IMPERFECT COMPETITION, IMPORT COSTS, IMPORT PROCEDURES, IMPORT PROCESS, IMPORT REGIME, IMPORT TARIFFS, IMPORT VALUES, INCOME, INCREASING RETURNS, INCREASING RETURNS TO SCALE, INFRASTRUCTURE PROJECTS, INFRASTRUCTURES, INLAND TRANSPORT, INPUT USE, INTERNATIONAL ORGANIZATIONS, INTERNATIONAL TRADE, INTERNATIONAL TRANSPORT, INVESTMENT FLOWS, ITC, LOW TARIFFS, MACROECONOMIC CONDITIONS, MANUFACTURING PRODUCTIVITY, MARITIME TRANSPORT, MARKET ACCESS, MARKET STRUCTURE, MULTILATERAL NEGOTIATIONS, MULTILATERAL TRADE, NON-TARIFF BARRIERS, OIL, OPEN ECONOMIES, OPENNESS, OPPORTUNITY COSTS, PATTERN OF TRADE, PATTERNS OF TRADE, POLITICAL ECONOMY, PORT OF ENTRY, PREFERENTIAL ACCESS, PREFERENTIAL AGREEMENTS, PREFERENTIAL BASIS, PREFERENTIAL MARKET ACCESS, PREFERENTIAL TARIFF, PREFERENTIAL TRADE, PREFERENTIAL TRADE AGREEMENTS, PREFERENTIAL TRADE ARRANGEMENTS, PRICE DIFFERENTIALS, PRICE INCREASES, PRIMARY FACTORS, PRODUCTION COSTS, PRODUCTION PROCESSES, PROFIT MARGIN, PROPERTY RIGHTS, PROTECTIONIST, PROTECTIONIST POLICIES, QUALITY OF TRANSPORT, QUANTITATIVE RESTRICTIONS, QUOTAS, RAILROADS, REDUCTION IN TARIFFS, REFRIGERATION, REGIONALISM, REGIONALIZATION, REGULATORY BARRIERS, REGULATORY POLICIES, ROAD, ROAD INFRASTRUCTURE, ROAD NETWORK, ROAD TRANSPORT, ROAD TRANSPORT SERVICES, ROUTE, RULES OF ORIGIN, SAFEGUARD MEASURES, SAFETY, SHARE OF WORLD EXPORTS, SIDE PAYMENTS, TARIFF BARRIERS, TARIFF BINDINGS, TARIFF DATA, TARIFF LINES, TARIFF PREFERENCES, TARIFF RATES, TARIFF STRUCTURES, TAX, TAX RATES, TECHNICAL BARRIERS, TECHNICAL REGULATIONS, TELECOMMUNICATIONS, TERMS OF TRADE, TRADE AGREEMENT, TRADE BARRIERS, TRADE CENTER, TRADE COSTS, TRADE DATA, TRADE DEFLECTION, TRADE EXPANSION, TRADE FACILITATION, TRADE FLOWS, TRADE INDICATORS, TRADE LOGISTICS, TRADE MORE, TRADE NEGOTIATIONS, TRADE PERFORMANCE, TRADE POLICIES, TRADE POLICY, TRADE POLICY INSTRUMENTS, TRADE PREFERENCES, TRADE REGIME, TRADE REGIMES, TRADE VALUES, TRADE VOLUME, TRADE VOLUMES, TRAFFIC, TRANSACTION COSTS, TRANSACTIONS COSTS, TRANSIT, TRANSPARENCY, TRANSPORT, TRANSPORT COSTS, TRANSPORT MARKET, TRANSPORT PRICE, TRANSPORT QUALITY, TRANSPORT SERVICES, TRANSPORTATION, TRANSPORTATION COSTS, TRANSPORTATION SERVICES, TRUE, UNEMPLOYMENT, VALUE OF APPAREL, VALUE OF EXPORTS, VARIABLE COSTS, VOLUME OF TRADE, WAGES, WORLD MARKETS, WORLD TRADE, WORLD TRADE ORGANIZATION, WTO,
Online Access:	http://documents.worldbank.org/curated/en/2008/09/11400771/trade-facilitation-matters-africa https://hdl.handle.net/10986/6321
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