What Constrains Africa’s Exports?

Africa's share of global exports has dropped by 50 percent over the last three decades. To stem this decline, aid for trade to the region has increased rapidly in recent years. Assistance can target improvements in three important components of trade facilitation: transit times, documentation,...

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Main Authors: Freund, Caroline, Rocha, Nadia
Format: Journal Article
Language:en_US
Published: World Bank 2013
Subjects:
Online Access:http://hdl.handle.net/10986/13479
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spelling okr-10986-134792021-04-23T14:03:08Z What Constrains Africa’s Exports? Freund, Caroline Rocha, Nadia congestion crossing freight inspection port authorities road road conditions road quality roads route safety traffic transit transport transportation travel distance travel distances travel time travel times vehicles Africa's share of global exports has dropped by 50 percent over the last three decades. To stem this decline, aid for trade to the region has increased rapidly in recent years. Assistance can target improvements in three important components of trade facilitation: transit times, documentation, and ports and customs. Of these, transit delays have the most economically and statistically significant effect on exports. Specifically, a one day reduction in inland travel times leads to a 7 percent increase in exports, after controlling for the standard determinants of trade and potential endogeneity. Put another way, a one day reduction in inland travel times translates into a 2 percentage point decrease in all importing-country tariffs. By contrast, longer delays in the other areas have a far smaller impact on trade. Large transit delays are relatively more harmful because they are associated with high (within-country) variation, making delivery targets difficult to meet. Finally, the results imply that transit times are primarily about institutional features—such as border delays, road quality, fleet class and competition and security—and not geography. 2013-05-21T13:35:09Z 2013-05-21T13:35:09Z 2011-10-18 Journal Article World Bank Economic Review 1564-698X doi:10.1093/wber/lhr016 http://hdl.handle.net/10986/13479 en_US World Bank Economic Review;25(3) CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank World Bank Journal Article Africa
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language en_US
topic congestion
crossing
freight
inspection
port authorities
road
road conditions
road quality
roads
route
safety
traffic
transit
transport
transportation
travel distance
travel distances
travel time
travel times
vehicles
spellingShingle congestion
crossing
freight
inspection
port authorities
road
road conditions
road quality
roads
route
safety
traffic
transit
transport
transportation
travel distance
travel distances
travel time
travel times
vehicles
Freund, Caroline
Rocha, Nadia
What Constrains Africa’s Exports?
geographic_facet Africa
relation World Bank Economic Review;25(3)
description Africa's share of global exports has dropped by 50 percent over the last three decades. To stem this decline, aid for trade to the region has increased rapidly in recent years. Assistance can target improvements in three important components of trade facilitation: transit times, documentation, and ports and customs. Of these, transit delays have the most economically and statistically significant effect on exports. Specifically, a one day reduction in inland travel times leads to a 7 percent increase in exports, after controlling for the standard determinants of trade and potential endogeneity. Put another way, a one day reduction in inland travel times translates into a 2 percentage point decrease in all importing-country tariffs. By contrast, longer delays in the other areas have a far smaller impact on trade. Large transit delays are relatively more harmful because they are associated with high (within-country) variation, making delivery targets difficult to meet. Finally, the results imply that transit times are primarily about institutional features—such as border delays, road quality, fleet class and competition and security—and not geography.
format Journal Article
author Freund, Caroline
Rocha, Nadia
author_facet Freund, Caroline
Rocha, Nadia
author_sort Freund, Caroline
title What Constrains Africa’s Exports?
title_short What Constrains Africa’s Exports?
title_full What Constrains Africa’s Exports?
title_fullStr What Constrains Africa’s Exports?
title_full_unstemmed What Constrains Africa’s Exports?
title_sort what constrains africa’s exports?
publisher World Bank
publishDate 2013
url http://hdl.handle.net/10986/13479
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