Trade Facilitation And Africa's Manufactured Goods' Export: A Panel Data Analysis

Abstract

This paper examines how issues of trade facilitation continue to discourage the export of manufactured goods from Africa. Pooled, cross-country, annual time series data for the period 1995 – 2004 for 20 African countries were used to examine nature of the relationship between some selected indicators of trade facilitation—Corruption perception index, roads network, number of start-up procedures for register a business, taxes on exports—and export of manufactured goods. Our conclusions are that policy-regime improvements and conscious efforts at removing all forms of constraints to the free flow of goods could have a significant impact on goods exports from Africa. Our recommendations are that governments in the different African countries will need to focus on ways of achieving acceptable standards and best practices in terms of facilitating trade expansion. Reform policies have to be targeted at these indicators so as to be more engaged in the global value chain.

Looking Back to Look Forward: Setting Future Research Agenda for International Business in Textiles and Clothing Industry

“…Interestingly, the findings showed it was the more recent literatures, e.g. Wilson et al (2003); Akinkugbe (2009); Hoekmann and Nicita (2008); and Portugal-Perez and Wilson (2010), which have stated to included trade facilitation related factors in the gravity model. Wilson et al (2003) developed a trade facilitation index (TFI) to measure trade facilitation factors, and argued there are four key areas: port efficiency, customs environment, domestic regulatory environment and the infrastructure to e-business usage.…”

“…Consequently, determinants specific to regional blocs and trade policies and agreement were evident. On the other hand, many studies sought to identify the specific determinants of trade facilitation (Martinez-Zarzoso 2003;Portugal-Perez and Wilson 2010;Kien 2009;Akinkugbe 2009), and their impact on trade flow between countries (Chan et al 2008;Djankov et al 2010;Lau et al 2017). From these studies, there is a diversity of determinants ranging from common economic variables, originating from the gravity equation, to geographical, social and trade variables, which have all been applied to examine their impact on trade flow.…”

“…Several studies (e.g. Akinkugbe 2009 andHoekmann andNicita 2008) have used Wilson et al's (2003) TFI index in their studies, however, as an overall index indicator to represent the four trade facilitation areas highlighted by Wilson et al (2003). As this study seeks to synthesis the determinants of bilateral trade, Wilson et al's (2003) TFI provided a useful basis to categorise trade facilitation determinants which emerged from the literature.…”

“…The customs determinant concerned factors related to irregular payments, low import fees, hidden import barriers, bribery and corruption. Wilson et al, (2003) and Akinkugbe (2009) included a Corruption Perception Index as a variable in their study. Similar factors have been acknowledged by Hoekmann and Nicita (2008), who refers to these as the cost factors of trading as they require time and human resource to complete e.g.…”