Why Trade Facilitation Matters to Africa?

40 Pages Posted: 20 Apr 2016

See all articles by Alberto Portugal-Perez

Alberto Portugal-Perez

World Bank

John S. Wilson

World Bank - Development Research Group (DECRG)

Date Written: September 1, 2008

Abstract

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.

Keywords: Transport Economics Policy & Planning, Free Trade, Economic Theory & Research, Environmental Economics & Policies, Trade Policy

Suggested Citation

Portugal-Perez, Alberto and Wilson, John S., Why Trade Facilitation Matters to Africa? (September 1, 2008). World Bank Policy Research Working Paper No. 4719, Available at SSRN: https://ssrn.com/abstract=1269268

Alberto Portugal-Perez

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

John S. Wilson (Contact Author)

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

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