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Article
Assessing the Price-Raising Effect of Non-Tariff Measures in Africa
Journal of African Economies (2014)
  • Olivier Cadot
  • Julien Gourdon
Abstract

In spite of widespread tariff reductions, intra-African borders remain ‘thick’. Regional trade is inhibited by inadequate transportation infrastructure but also by various non-tariff measures (NTMs). This paper combines price data from the World Bank’s International Comparison Project with a new database on NTMs to estimate their effect on consumer prices for selected consumption products. Results based on panel regressions on 1,260 country-product pairs suggest that, after controlling for tariffs, systematic cross-country cost-of-living differences, and product-specific unobservables, sanitary and phytosanitary measures contribute to raise the price of African foodstuffs by 14%. At the product level, rice and other cereals, some types of meat (e.g. poultry) and edible oils tend to fetch high ad-valorem equivalents. Combining our estimates with data on household expenditure patterns from Kenya’s household survey, we show that the effect is regressive, raising the cost of living by 9% for poor households.

Publication Date
Summer August, 2014
Citation Information
Olivier Cadot and Julien Gourdon. "Assessing the Price-Raising Effect of Non-Tariff Measures in Africa" Journal of African Economies Vol. 23 Iss. 4 (2014)
Available at: http://works.bepress.com/julien_gourdon1/3/