Access to finance and intra-Africa trade efficiency

Autor: Brian Tavonga Mazorodze
Jazyk: angličtina
Rok vydání: 2024
Předmět:
Zdroj: Journal of Shipping and Trade, Vol 9, Iss 1, Pp 1-14 (2024)
Druh dokumentu: article
ISSN: 2364-4575
DOI: 10.1186/s41072-024-00180-1
Popis: Abstract This paper examines the impact of access to finance on intra-Africa trade efficiency using a panel dataset comprising 44 African exporters. Between 2008 and 2021, a stochastic frontier version of the gravity model finds intra-Africa trade to have been lower than its full potential by $1.1 billion on average. Exporters with better access to finance such as South Africa, Morrocco and Mauritius operated closer to their full potential. The effect of access to finance on intra-Africa trade is found to have been stronger between distant trading partners. This suggests that access to finance largely promotes intra-Africa trade through financing transportation and logistics. In view of these results, the analysis recommends policy efforts to improve access to finance in order to maximize trade between African countries.
Databáze: Directory of Open Access Journals
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