Effects of trade facilitation on trade performance in Africa: implication for agri-food sector

Abstract

This study examines the impact of trade facilitation on Africa's trade performance, focusing on agri-food trade, using a structural gravity model. Principal component analysis constructs trade facilitation indicators (2007-2020), while digital trade policies are assessed via the Regional Digital Trade Integration Index (RDTII) and Digital Service Trade Restrictiveness Index (DSTRI). Results from Poisson Pseudo-Maximum Likelihood (PPML) reveal that trade facilitation, particularly physical infrastructure, and ICT, significantly boosts agri-food trade. Conversely, restrictive digital trade policies hinder trade in goods and services. The findings emphasize the need for improved trade facilitation and adoption of the AfCFTA Digital Trade Protocol to enhance intra-African trade.