Why is African Trade so Limited?

Tóm tắt

This paper studies the determinants of the low participation of African countries in international trade. We point out the under-trading status of Africa, and then we estimate a gravity equation in order to identify the determinants of trade in general. As we characterize the level of these explanatory variables in Africa as compared to the rest of the world, we identify the main variables behind the low participation of Africa in trade in general. Usual gravity factors play an important role, but we show that non-tariff measures and the quality of infrastructure and institutions are important. Import duties do not significantly impede African exports.