Infrastructure and Trade Preferences for the Livestock Sector: Empirical Evidence from the Beef Industry in Africa

39 Pages Posted: 20 Apr 2016

See all articles by Atsushi Iimi

Atsushi Iimi

International Monetary Fund (IMF); World Bank

Date Written: April 1, 2007

Abstract

Trade preferences are expected to facilitate global market integration and offer the potential for rapid economic growth and poverty reduction for developing countries. But those preferences do not always guarantee sustainable external competitiveness to beneficiary countries and may risk discouraging their efforts to improve underlying productivity. This paper examines the EU beef import market where several African countries have been granted preferential treatment. The estimation results suggest that profitability improvement achieved by countries under the Cotonou protocol compares unfavorably with the returns to nonbeneficiary countries in recent years. Rather, it shows that public infrastructure, such as paved roads, has an important role in lowering production costs and thus increasing external competitiveness and market shares.

Keywords: Livestock & Animal Husbandry, Economic Theory & Research, Markets and Market Access, Transport Economics Policy & Planning, Free Trade

Suggested Citation

Iimi, Atsushi, Infrastructure and Trade Preferences for the Livestock Sector: Empirical Evidence from the Beef Industry in Africa (April 1, 2007). World Bank Policy Research Working Paper No. 4201. Available at SSRN: https://ssrn.com/abstract=980819

Atsushi Iimi (Contact Author)

International Monetary Fund (IMF)

700 19th Street, N.W.
Washington, DC 20431
United States

World Bank ( email )

1818 H Street NW
Washington, DC 20433
United States

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