Macroeconomic outcomes of trade facilitation reform: a productivity growth-based analysis in some selected African countries

Takpara, Moukaila Mouzamilou (2025): Macroeconomic outcomes of trade facilitation reform: a productivity growth-based analysis in some selected African countries.

Abstract

The article investigates the contribution of trade facilitation to productivity growth in Sub-Saharan African (SSA) countries. We include four trade facilitation indicators (i.e., physical infrastructure, ICT, business and regulatory environment, border, and transport efficiency) as explanatory factors for productivity growth measured by both total factor productivity and labor productivity. The empirical evidence is based on both Pooled Ordinary Least Squares (POLS) and the Instrumental Variable Two-Stage Least squares (IV-2SLS) in a sample of 29 SSA countries over the period 2004-2017. The main results from the study show that trade facilitation contributes positively and significantly to total factor productivity as well as labor productivity in SSA. Based on this finding, SSA countries need to improve border procedures as well as the business and regulatory environment to generate substantial productivity gains and boost the competitiveness of micro, small and medium-sized enterprises (MSMEs), given the job creation potential of MSMEs.

• Item Type: MPRA Paper
• Language: English
• Keywords: Trade facilitation, Productivity, Sub-Saharan Africa, 2SLS
• Subjects: F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations; F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence

References

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