Unrestricted Market Access for Sub-Saharan Africa: How Much is it Worth and Who Pays?

30 Pages Posted: 20 Apr 2016

See all articles by Aaditya Mattoo

Aaditya Mattoo

World Bank - Development Research Group (DECRG)

Elena Ianchovichina

World Bank

Marcelo Olarreaga

University of Geneva; Centre for Economic Policy Research (CEPR)

Multiple version iconThere are 2 versions of this paper

Date Written: April 2001

Abstract

The European Union, Japan, and the United States have recently announced initiatives to improve market access for the poorest countries. How would these initiatives affect Sub-Saharan Africa and the rest of the world? The European Union, Japan, and the United States have recently announced initiatives to improve market access for the poorest countries.

Ianchovichina, Mattoo, and Olarreaga assess the impact on Sub-Saharan Africa of these initiatives and others that might be taken. They find that fully unrestricted access to all the Quad countries (Canada, the European Union, Japan, and the United States) would produce substantial gains for Sub-Saharan Africa, leading to a 14 percent increase in non-oil exports ($2.5 billion) and boosting real incomes by about 1 percent ($1.8 billion). Most of these gains would come from preferential access to the highly protected Japanese and European agricultural markets, especially the heavily protected Japanese market for meat and certain cereal grains. The smallness of Sub-Saharan Africa's trade ensures that the costs of trade diversion for the Quad, other developing countries, and the world would be on the whole negligible. One concern, however, is that preferential access to protected markets might lead Sub-Saharan Africa to produce goods in which it does not have a global comparative advantage, and the future erosion of these preferences might lead to adjustment costs.

This paper - a product of Trade, Development Research Group - is part of a larger effort in the group to understand the implications of improved market access for developing countries.

Keywords: Duty-free access, least developed countries, Sub-Saharan Africa

JEL Classification: F11, F13

Suggested Citation

Mattoo, Aaditya and Ianchovichina, Elena and Olarreaga, Marcelo, Unrestricted Market Access for Sub-Saharan Africa: How Much is it Worth and Who Pays? (April 2001). World Bank Policy Research Working Paper No. 2595. Available at SSRN: https://ssrn.com/abstract=632664

Aaditya Mattoo (Contact Author)

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

1818 H Street, N.W.
Room MC 3-327
Washington, DC 20433
United States
202-458-8047 (Phone)
202-676-9810 (Fax)

HOME PAGE: http://econ.worldbank.org/staff/amattoo

Elena Ianchovichina

World Bank ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States
202-458-8910 (Phone)
202-522-1159 (Fax)

Marcelo Olarreaga

University of Geneva ( email )

40 Boulevard du Pont-d'Arve
Genève, CH - 1205
Switzerland

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

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