Enhancing North Africa's Infrastructure for Improved Competitiveness

Thierry Yogo () and Audrey Verdier-Chouchane

African Development Review, 2015, vol. 27, issue 3, 274-287

Abstract: type="main" xml:lang="en">

This paper aims at assessing the relationship between infrastructure development and competitiveness in North Africa. Based on the World Bank data, we analyze the infrastructure indicators of four North African countries over the period 1996–2012 and estimate the elasticity of competitiveness with respect to infrastructure development. We first argue that competitiveness could be improved by investing more on infrastructure. Although comparison with sub-Saharan Africa reveals that important progress has been made in North Africa in terms of quantity, countries need to improve the infrastructure quality by investing in green energy, in maintenance, in public private partnerships and in regional infrastructure. Econometric analysis confirms that a 1 percent increase in infrastructure quality raises competitiveness by 0.64 percent. Country specific elasticity is respectively 0.22 in Algeria, 1.42 in Egypt, 0.36 in Tunisia and 0.56 in Morocco. Based on these results, appropriate policy recommendations are discussed.

Date: 2015
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