Economic Integration in the Lower Congo Region : Opening the Kinshasa-Brazzaville Bottleneck

Economic Integration in the Lower Congo Region : Opening the Kinshasa-Brazzaville Bottleneck

This working paper assesses cross-border economic integration in the Lower Congo region. It focuses on the Kinshasa-Brazzaville conurbation, which is projected to become Africa's largest urban area by 2025, and is already serving as the gatewa...

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Bibliographic Details
Main Authors:	Brulhart, Marius, Hoppe, Mombert
Format:	Policy Research Working Paper
Language:	English
Published:	2012
Subjects:	ACCIDENTS ADMINISTRATIVE COSTS ADMINISTRATIVE PROCEDURES AIRPORT ARBITRAGE ARTERY AVERAGE TARIFFS AVERAGE TRADE BOND BORDER CROSSINGS BORDER TRAFFIC BRIBERY BRIDGE CAPITAL GOODS CAPITAL STOCK CAR CHANGES IN TRADE CLIENT BASES COMMON MARKET COMPETITIVE ADVANTAGES CONCESSIONS CONFIDENTIALITY CONSUMER GOODS CONSUMERS COST OF TRANSPORT CROSS-BORDER EXPANSION CROSS-BORDER TRADE CROSSING CUSTOMER SERVICE CUSTOMS CUSTOMS ADMINISTRATION CUSTOMS AUTHORITIES CUSTOMS DUTIES CUSTOMS FORMALITIES CUSTOMS PROCEDURES CUSTOMS UNION CUSTOMS UNIONS DEMOGRAPHIC DEVELOPING COUNTRIES DEVELOPMENT POLICY DIESEL DIESEL ENGINES DIVIDENDS DUOPOLY ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC INTEGRATION ECONOMIC POLICY ECONOMIC RELATIONS ECONOMIC RENTS ECONOMIC STRUCTURES ELASTICITIES ELASTICITY ELASTICITY OF TRADE ENTRY POINT ENTRY POINTS EUROPEAN UNION EXCHANGE RATES EXCISE DUTIES EXCLUSIVE RIGHTS EXPANSION OF TRADE EXPORT OPPORTUNITIES EXPORT PROCESSING EXPORT PROCESSING ZONE EXPORT SECTORS EXPORTS EXTERNAL TRADE FARES FERRIES FINANCE CORPORATION FLAT FARE FOREIGN EXCHANGE FOREIGN MARKETS FRAUD FREE TRADE FREE TRADE AGREEMENTS FREE TRADE AREA FREIGHT FREQUENT TRAVELERS FUEL FUEL COSTS GASOLINE GDP GENERALIZED SYSTEM OF PREFERENCES GOOD TRANSPORT GOODS IN TRANSIT GROWTH RATES HAULAGE COMPANIES HIGH TRADE BARRIERS HIGH TRANSPORT HOME MARKET HUMAN CAPITAL IMPACT OF TRADE IMPORT COSTS IMPORT DUTIES IMPORT PRICES INCOME INDIVIDUAL FIRMS INDIVIDUAL MARKET INEFFICIENCY INFRASTRUCTURE FUNDING INFRASTRUCTURE INVESTMENT INFRASTRUCTURE INVESTMENTS INFRASTRUCTURE PROJECTS INSPECTION INSURANCE INTERNATIONAL AGREEMENTS INTERNATIONAL BANK INTERNATIONAL FINANCE INTERNATIONAL TRADE JOURNEY JOURNEYS LOCAL CURRENCY MARGINAL COST MARGINAL REVENUE MARKET INEFFICIENCY MARKET INTEGRATION MARKET PRICES MARKET SEGMENTATION MARKET STRUCTURE MEASURE OF TRADE MISMANAGEMENT MODE OF TRANSPORT MONOPOLY NEIGHBORHOODS PASSENGER TRAFFIC PASSENGER TRANSPORT PASSENGER TRAVEL PASSENGERS PATTERNS OF TRADE PAYMENT POINTS PENSION PENSION LIABILITIES PENSIONERS POLICE POLICY MAKERS POLICY RESEARCH POPULATION DENSITY PORT AUTHORITY PORT FACILITIES PREFERENTIAL TRADE PREFERENTIAL TRADE AGREEMENT PRICE DIFFERENTIALS PRIVATE TRANSPORT PRIVATIZATION PRODUCT DIFFERENTIATION RAIL RAIL FREIGHT RAIL LINK RAILWAY RAILWAY LINE RAPID INDUSTRIALIZATION RED TAPE REGIONAL AGREEMENTS REGIONAL INTEGRATION REGIONAL INTEGRATION AGREEMENTS REGIONAL TRADE REGIONAL TRADE AGREEMENTS REGIONALISM REGRESSION ANALYSIS REGULATORY BARRIERS RETAIL MARKETS ROAD ROAD INFRASTRUCTURE ROAD TRANSPORT ROUTE ROUTES SAFETY SECURITY CONCERNS SPECIALIZATION STATISTICAL ANALYSIS STRICT CONFIDENTIALITY SUBURBS TARIFF REVENUE TARIFF SCHEDULE TAX TAX SYSTEM TRADE BALANCE TRADE BARRIERS TRADE COSTS TRADE DATA TRADE EXPANSION TRADE FACILITATION TRADE FLOWS TRADE INTEGRATION TRADE LIBERALIZATION TRADE ORGANIZATIONS TRADE POLICY TRADE VOLUMES TRADING ACTIVITY TRAFFIC VOLUMES TRANSIT TRANSIT TRADE TRANSPORT TRANSPORT COSTS TRANSPORT FACILITIES TRANSPORT INFRASTRUCTURE TRANSPORT MARKET TRANSPORT OPERATORS TRANSPORT SERVICES TRANSPORTS TRAVELERS TREATIES TRIP TRIPS TRUCK DELIVERY TRUE TURNOVER URBANIZATION VALUE ADDED VEHICLE VEHICLES VOLUME OF TRADE VOLUME OF TRAFFIC WORLD DEVELOPMENT INDICATORS
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111212144526 http://hdl.handle.net/10986/3678

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Summary:	This working paper assesses cross-border economic integration in the Lower Congo region. It focuses on the Kinshasa-Brazzaville conurbation, which is projected to become Africa's largest urban area by 2025, and is already serving as the gateway to large hinterlands. Despite their size and proximity, formal economic exchanges between the two cities are extremely limited. The volume of recorded passenger travel between Kinshasa and Brazzaville corresponds to about one-fifth of the volume of traffic between East and West Berlin during the time of the Berlin Wall, and formal trade volumes are derisorily small. As a consequence, the authors find evidence of statistically significant differences in retail prices, indicating unexploited scope for cross-river arbitrage. Through a survey of firms, they find that local traders perceive substantial scope for increasing cross-border economic activity if cross-river trade costs were reduced. Trade in locally produced goods and by small firms would especially benefit from such reductions. Existing high trade costs mainly result from a lack of competition in cross-river transport services, which are dominated by a duopoly of state-controlled operators. High administrative border costs, exacerbated by the presence of multiple government agencies at the border, act as a further obstacle. Liberalization of cross-river transport and customs reform could yield large economic benefits for local producers and consumers.

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