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Accepted Paper:
Developmental regionalism and the determinants of logistics costs: Case of Ethiopia and the Ethiopia - Djibouti transport corridor
Sokhna Ndoye
(University of Edinburgh)
Paper short abstract:
The paper I am proposing aims to discuss the way the political economy context at the level of individual African countries can affect the effectiveness with which specific regional integration programmes and initiatives are implemented.
Paper long abstract:
One of the main pillars of the developmental regionalism agenda implicitly pursued by the African Union Commission and Regional Economic Communities over these recent years is the development of regional infrastructure in order to promote the reduction of trade costs and the expansion of intra-African trade. In the case of cross-border transport corridors, their construction (or rehabilitation) is generally accompanied by a number of regional reforms aimed at reducing logistics costs and which include the liberalization of transport services at the regional level.
As this paper will show, the level of logistics costs along cross-border transport corridors is highly dependent on the functioning of domestic logistics sectors in countries sharing the corridors, independently of the availability or not of quality transport infrastructure.
Drawing on data collected during fieldwork in Ethiopia and Djibouti, this paper will use a political settlements approach to analyse the extent to which the rehabilitation of the Ethiopia-Djibouti transport corridor could substantially reduce logistics costs along this transport corridor in view of the political economy context in Ethiopia. More particularly, this paper will discuss the way the nature of state-business relations in Ethiopia affects the level of logistics costs along the Ethiopia-Djibouti transport corridor and the way the nature of those state-business relations can also affect the feasibility of continental and regional reforms aimed at liberalizing transport services. Data was collected between March and July 2019 through observation, documentary analysis and semi-structured interviews with transporters, government officials, members of the private sector and officials from international organisations.
Click the star to add/remove an item to/from your individual schedule.
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Accepted Paper:
Paper short abstract:
Paper long abstract:
One of the main pillars of the developmental regionalism agenda implicitly pursued by the African Union Commission and Regional Economic Communities over these recent years is the development of regional infrastructure in order to promote the reduction of trade costs and the expansion of intra-African trade. In the case of cross-border transport corridors, their construction (or rehabilitation) is generally accompanied by a number of regional reforms aimed at reducing logistics costs and which include the liberalization of transport services at the regional level.
As this paper will show, the level of logistics costs along cross-border transport corridors is highly dependent on the functioning of domestic logistics sectors in countries sharing the corridors, independently of the availability or not of quality transport infrastructure.
Drawing on data collected during fieldwork in Ethiopia and Djibouti, this paper will use a political settlements approach to analyse the extent to which the rehabilitation of the Ethiopia-Djibouti transport corridor could substantially reduce logistics costs along this transport corridor in view of the political economy context in Ethiopia. More particularly, this paper will discuss the way the nature of state-business relations in Ethiopia affects the level of logistics costs along the Ethiopia-Djibouti transport corridor and the way the nature of those state-business relations can also affect the feasibility of continental and regional reforms aimed at liberalizing transport services. Data was collected between March and July 2019 through observation, documentary analysis and semi-structured interviews with transporters, government officials, members of the private sector and officials from international organisations.
The Politics of Economic Transformation: Finance and Industrial Policy II
Session 1 Wednesday 6 July, 2022, -