TY - CEPII
A1 - Lionel Fontagné A1 - Mathilde Lebrand A1 - Siobhan Murray A1 - Michele Ruta A1 - Gianluca Santoni
TI - Trade and Infrastructure Integration in Africa
IS - 2023-14
T3 - Working Papers
KW - Infrastructure KW - Preferential Trade Agreements KW - Structural Gravity KW - General Equilibrium
N2 -
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, transport route optimization and 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. Complementing trade integration by reducing transportation time on roads, ports and border posts would increase exports by 11.5 percent and GDP by 2 percent. Major transport investments are necessary to fully reap the benefits of the AfCFTA.