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Informality, Trade Facilitation, and Trade Flows: Evidence from Guinea-Bissau

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Listed:
  • Julio Vicente Cateia
  • Luc Savard
  • Edivo Oliveira de Almeida
  • William Barbosa

Abstract

This paper aims to assess the role of informality and trade facilitation on the export probability of Guinea-Bissau. We include informality in the Féchet function, which gives the expression for the country’s supply probability. We find that Guinea-Bissau is about 7.2% less likely to export due to the 1% increase in informality. The export’s probability increases by about 1.7%, 4%, and 1.1% due to a 1% increase in trade facilitation, R&D stock, and year of education. These results are significant at the usual levels. We suggest a development agenda aimed at reducing the level of informality in this country.

Suggested Citation

  • Julio Vicente Cateia & Luc Savard & Edivo Oliveira de Almeida & William Barbosa, 2022. "Informality, Trade Facilitation, and Trade Flows: Evidence from Guinea-Bissau," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 14(11), pages 1-21, November.
    • Handle: RePEc:ibn:ijefaa:v:14:y:2022:i:11:p:21
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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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