Trade and Infrastructure Integration in Africa

Lionel Fontagné, Mathilde Lebrand, Siobhan Murray, Michele Ruta and Gianluca Santoni

Working Papers from CEPII research center

Abstract: Economic integration of the African continent rests on two pillars: the ratification of an ambitious trade agreement and massive investment in transportation infrastructure. Leveraging a newly created city-level database on African exporters’ transport times and the latest techniques in general equilibrium modelling of international trade, the paper quantifies the impact of greater trade and transport integration for Africa. A pan-African agreement, such as the Continental Free Trade Area (AfCFTA), would increase African countries’ exports by an average of 3.4 percent and GDP by 0.6 percent. Additional investments in roads, ports and in land borders, as envisioned by the Program for Infrastructure Development in Africa (PIDA), would increase exports by 11.5 percent and GDP by 2.0 percent. Major transport investments are necessary to fully reap the benefits of the AfCFTA.

Keywords: Infrastructure; Preferential Trade Agreements; Structural Gravity; General Equilibrium (search for similar items in EconPapers)
JEL-codes: F14 F15 (search for similar items in EconPapers)
Date: 2023-06
New Economics Papers: this item is included in nep-int and nep-tre
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Working Paper: Trade and Infrastructure Integration in Africa (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:cii:cepidt:2023-14

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