Determinants of Cross-Border Informal Trade: The Case of Benin

This paper utilizes a survey on informal cross-border trade in Benin (ECENE), conducted by the National Institute of Statistics in 2011, to study the determinants of informal versus formal trade, concentrating on Benin’s exports and re-exports to neighboring countries. We first show that goods trade...

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Autores principales: Bensassi, Sami, Jarreau, Joachim, Mitaritonna, Cristina
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2016
Materias:
Acceso en línea:https://hdl.handle.net/10568/147445
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author Bensassi, Sami
Jarreau, Joachim
Mitaritonna, Cristina
author_browse Bensassi, Sami
Jarreau, Joachim
Mitaritonna, Cristina
author_facet Bensassi, Sami
Jarreau, Joachim
Mitaritonna, Cristina
author_sort Bensassi, Sami
collection Repository of Agricultural Research Outputs (CGSpace)
description This paper utilizes a survey on informal cross-border trade in Benin (ECENE), conducted by the National Institute of Statistics in 2011, to study the determinants of informal versus formal trade, concentrating on Benin’s exports and re-exports to neighboring countries. We first show that goods traded formally and informally are very different and that the overlap between the two types of trade is very thin, suggesting the existence of two separate channels of trade. For example, agricultural products are mainly traded informally. Second, we illustrate how including informal cross-border trade gives to regional trade a higher role compared to that measured using formal trade only, which is particularly low by global standards. Finally, we study trade policy variables, and the time sensitiveness of products, as potential determinants of informality. We find that trade policy variables (tariffs and import bans) significantly explain informality of trade. We also find that, for re-exports, time sensitive products are more likely to be traded through the informal channel. This suggests a potential role for trade facilitation measures in reducing informality.
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spelling CGSpace1474452025-11-06T06:04:40Z Determinants of Cross-Border Informal Trade: The Case of Benin Bensassi, Sami Jarreau, Joachim Mitaritonna, Cristina informal sector trade This paper utilizes a survey on informal cross-border trade in Benin (ECENE), conducted by the National Institute of Statistics in 2011, to study the determinants of informal versus formal trade, concentrating on Benin’s exports and re-exports to neighboring countries. We first show that goods traded formally and informally are very different and that the overlap between the two types of trade is very thin, suggesting the existence of two separate channels of trade. For example, agricultural products are mainly traded informally. Second, we illustrate how including informal cross-border trade gives to regional trade a higher role compared to that measured using formal trade only, which is particularly low by global standards. Finally, we study trade policy variables, and the time sensitiveness of products, as potential determinants of informality. We find that trade policy variables (tariffs and import bans) significantly explain informality of trade. We also find that, for re-exports, time sensitive products are more likely to be traded through the informal channel. This suggests a potential role for trade facilitation measures in reducing informality. 2016-10-26 2024-06-21T09:22:53Z 2024-06-21T09:22:53Z Working Paper https://hdl.handle.net/10568/147445 en Open Access application/pdf International Food Policy Research Institute Bensassi, Sami; Jarreau, Joachim; and Mitaritonna, Cristina. 2016. Determinants of Cross-Border Informal Trade: The Case of Benin. AGRODEP Working Paper 0034. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/147445
spellingShingle informal sector
trade
Bensassi, Sami
Jarreau, Joachim
Mitaritonna, Cristina
Determinants of Cross-Border Informal Trade: The Case of Benin
title Determinants of Cross-Border Informal Trade: The Case of Benin
title_full Determinants of Cross-Border Informal Trade: The Case of Benin
title_fullStr Determinants of Cross-Border Informal Trade: The Case of Benin
title_full_unstemmed Determinants of Cross-Border Informal Trade: The Case of Benin
title_short Determinants of Cross-Border Informal Trade: The Case of Benin
title_sort determinants of cross border informal trade the case of benin
topic informal sector
trade
url https://hdl.handle.net/10568/147445
work_keys_str_mv AT bensassisami determinantsofcrossborderinformaltradethecaseofbenin
AT jarreaujoachim determinantsofcrossborderinformaltradethecaseofbenin
AT mitaritonnacristina determinantsofcrossborderinformaltradethecaseofbenin