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Trade facilitation & logistics · 2015

Who profits from trade facilitation initiatives? Implications for African countries

Journal of African Trade, 2(1–2), 51–70

The paper

This paper asks whether trade facilitation mainly benefits large lead firms or also reaches smaller suppliers in developing countries. It combines a discussion of value-chain mechanisms with firm-level evidence on exporting and border delays.

Research findings

  • The data provide no consistent support for the claim that only large firms benefit from better trade facilitation.
  • Shorter export times are associated with stronger exporting across firm sizes, including smaller firms supplying value chains.

Policy takeaways

  • Include trade facilitation in policies supporting small producers and exporters.
  • Economies dominated by supplier firms have a stake in reducing border delays, even when few global lead firms are headquartered there.