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Analysing the Impact of Trade Facilitation on Intra-exports in the Southern African Development Community (SADC)
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Journal Article
Analysing the Impact of Trade Facilitation on Intra-exports in the Southern African Development Community (SADC)
2025
Overview
This study examines the impact of trade facilitation, as measured by the World Bank’s logistic performance index (LPI), on intra-Southern Africa Development Community (SADC) exports. It further performs counterfactual simulations to estimate expected intra-SADC export gains resulting from improvements in components of the LPI. Gravity results show that a 1% increase in LPI by the importer is associated with a 1.225% increase in intra-SADC exports on average. With regard to components of LPI, a 1% improvement in customs and border efficiency and timeliness is associated with a respective increase in intra-SADC exports by 1.333% and 2.072% on average, respectively. Counterfactual simulations show that if SADC member states whose LPI and components of LPI, particularly customs and border efficiency and timeliness, are below the SADC average are improved to reach the SADC average, intra-SADC exports would increase by US$7.8 billion, US$1.45 billion and US$1.53 billion, respectively. Furthermore, the biggest beneficiaries of these improvements would be Angola, the Democratic Republic of Congo and Zimbabwe. The study recommends that underperforming member states undertake trade facilitation reforms in components of LPI.
Publisher
Adonis & Abbey Publishers,Adonis & Abbey Publishers Ltd
Subject
