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Trade Policy and African Participation in Global Value Chains: Does Trade Facilitation Matter?

Author

Listed:
  • Takpara, Moukaila Mouzamilou

    (Pan-African University, Institute of Governance, Humanities and Social Sciences, Cameroon)

  • Djiogap, Constant Fouopi

    (University of Yaoundé II, Cameroon)

  • Sawadogo, Bouraïma

    (Pan-African University, Institute of Governance, Humanities and Social Sciences, Cameroon)

Abstract

This study offers an empirical appraisal of the contribution of trade facilitation for Sub-Saharan Africa (SSA) countries participation in global value chains. We used new value-added data on a panel of 25 countries over the period 2004-2017. The results using pooled ordinary least squares (OLS) regression and instrumental variable-two-stage least squares (IV-2SLS) estimators reveal that trade facilitation indicators such as physical infrastructure, information and communication technology, and border and transport efficiency support SSA countries' participation in global value chains. More interestingly, these results are robust at the sectoral level, particularly in agriculture, manufacturing, and textiles & clothing sectors for physical infrastructure and ICT, while the business environment is conducive to upstream integration of GVCs in the agriculture and textiles & clothing sectors. These results underscore the increased importance of trade facilitation in the era of global value chains and call for well-targeted sectoral policies to reap the benefits of GVCs.

Suggested Citation

  • Takpara, Moukaila Mouzamilou & Djiogap, Constant Fouopi & Sawadogo, Bouraïma, 2023. "Trade Policy and African Participation in Global Value Chains: Does Trade Facilitation Matter?," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 38(1), pages 59-92.
    • Handle: RePEc:ris:integr:0868
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    Cited by:

    1. Wassie, Mengistu Alamneh & Kornher, Lukas & Zaki, Chahir, 2024. "Revisiting the Impact of Trade Facilitation Measures in Africa: Structural Gravity Estimation and Ad Valorem Tariff Equivalents," IAAE 2024 Conference, August 2-7, 2024, New Delhi, India 344296, International Association of Agricultural Economists (IAAE).

    More about this item

    Keywords

    global value chains; trade policy; trade facilitation; Sub-Saharan Africa; two-stage least squares (IV-2SLS);
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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