AFTSD 

Abstract:  Expanding the role of trade in economic activity in Africa is an important mechanism to support the real per capita income growth needed to achieve the 2030 global development agenda and the Agenda 2063 vision for Africa. This paper discusses recent research focusing on a key policy dimension of leveraging trade to support development—facilitating trade. It argues this requires understanding better the reasons for high intra-African trade costs. Much of the recent research in this area has been on quantifying trade costs and their effects. This is important, but we argue that from a policy research perspective more focus is needed on the constituent elements that jointly determine trade costs at any point in time and place, and the design of mechanisms to facilitate trade that recognize the multidimensional nature of trade costs and the associated political economy forces within and between countries, regional economic communities and development agencies.

 

Keywords: trade costs; facilitation; regional integration; services; Africa

 

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