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

Julio Vicente Cateia, Luc Savard, Edivo Oliveira de Almeida and William Barbosa

International Journal of Economics and Finance, 2022, vol. 14, issue 11, 21

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.

Date: 2022
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