Macroeconomic outcomes of trade facilitation reform: a productivity growth-based analysis in some selected African countries

Moukaila Mouzamilou Takpara

MPRA Paper from University Library of Munich, Germany

Abstract: The article investigates the contribution of trade facilitation to productivity growth in Sub-Saharan African (SSA) countries. We include four trade facilitation indicators (i.e., physical infrastructure, ICT, business and regulatory environment, border, and transport efficiency) as explanatory factors for productivity growth measured by both total factor productivity and labor productivity. The empirical evidence is based on both Pooled Ordinary Least Squares (POLS) and the Instrumental Variable Two-Stage Least squares (IV-2SLS) in a sample of 29 SSA countries over the period 2004-2017. The main results from the study show that trade facilitation contributes positively and significantly to total factor productivity as well as labor productivity in SSA. Based on this finding, SSA countries need to improve border procedures as well as the business and regulatory environment to generate substantial productivity gains and boost the competitiveness of micro, small and medium-sized enterprises (MSMEs), given the job creation potential of MSMEs.

Keywords: Trade facilitation; Productivity; Sub-Saharan Africa; 2SLS (search for similar items in EconPapers)
JEL-codes: F13 F14 O11 O47 (search for similar items in EconPapers)
Date: 2025-08-18
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