Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/183237
Authors: 
Jiang, Yushi
Borojo, Dinkneh Gebre
Year of Publication: 
2018
Series/Report no.: 
Economics Discussion Papers 2018-75
Abstract: 
The authors examine the impacts of quality of institutions, border and transport efficiency, physical and communication infrastructure on overall and intra-Africa trade covering 44 African countries and their 173 trade partners for the periods 2000-2014. Aggregate indicators are derived for quality of economic institutions, border and transport efficiency, physical and communication infrastructure using principal component analysis. The findings disclose that intra-Africa and overall Africa's trade robustly determined by quality of institutions, border and transport efficiency, physical and communication infrastructure. The estimates also indicate that the marginal effect of the quality of institutions, physical and communication infrastructure on trade flow appears to be increasing in GDP per capita. In contrast, the marginal effect of border and transport efficiency on trade decreases in GDP per capita. The authors compute simulation of improving each indicator to the best performer in the sample. The findings are robust to estimation method conducted to account for potential endogeneity.
Subjects: 
Trade flow
transport efficiency
quality of institutions
physical and communication infrastructure
gravity model
African countries
JEL: 
F1
F14
Creative Commons License: 
https://creativecommons.org/licenses/by/4.0/
Document Type: 
Working Paper

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