Examining The “Impact Of Trade Facilitation Indicators On Bilateral Exports” Involving Sub-Saharan Africa

Abstract

This study examines the impact of trade facilitation measures on bilateral trade involving Sub Saharan Africa. It uses country specific data on logistic performance measures for 189 countries including 47 from SSA over a 9-year period from 2007 - 2015. Leveraging a logistics performance augmented gravity model, the findings show trade enhancing effects on all the six trade facilitation measures with customs efficiency, trade and transport-related infrastructure and competence and quality of logistics services having the greatest impact in that order. A unit improvement in the efficiency of customs clearance measure will enhance bilateral trade by 19% – 27% whilst that for infrastructure ranges between 16% and 24%. Policy recommendations therefore focuses on a two-pronged approach – whilst investment in trade-related infrastructure is necessary, the investments required are huge and the benefits accrue in the medium to long-term. To achieve quick-wins, it is imperative that a special focus be given to initiative that leads to improve the efficiency of customs clearance procedures.