Salamat Ali and Chris Milner, University of Nottingham

Personal submission by Salamat Ali and Chris Milner (GEP and CREDIT, School of Economics,
University of Nottingham, Nottingham, NG7 2RD) on:

The Compositional Effects of High Trade Costs on Developing Countries’ Manufactured Exports

Summary

  • Trade costs in Africa are relatively higher than those in other developing regions.
  • These high trade costs affect not only the export volume but also the export mix of African
    countries.
  • Reducing these costs would not only increase the volume of Africa’s manufacturing exports,
    but would also help countries in this region to diversify their manufacturing exports and
    increase the share of more complex and trade cost-sensitive, manufactured exports.
  • Infrastructure and institutional reform is central to a broad concept of trade facilitation,
    which will be required for export diversification and structural transformation in the Africa
    region.
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