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Newer ways for fewer stays: An economic evaluation of One-stop border posts in Uganda

Svensson, Kevin LU (2021) NEKN01 20211
Department of Economics
Abstract
High costs, time delays, inefficiency and complicated border procedures when engaging in cross-border trade hinders competitiveness and economic development in many developing countries, such as Uganda. To try to reduce these obstacles and challenges, Uganda has implemented One-stop border posts, intending to make international trade cheaper, quicker, and simpler. This paper investigates the efficiency of these reforms and more specifically in what way the implementation of One-stop border posts in Uganda has affected cross-border trade flows in relation to traditional border crossings. This is achieved by using a Difference-in Differences framework accounting for two-way fixed effects to analyse cross-border trade flows between Uganda and... (More)
High costs, time delays, inefficiency and complicated border procedures when engaging in cross-border trade hinders competitiveness and economic development in many developing countries, such as Uganda. To try to reduce these obstacles and challenges, Uganda has implemented One-stop border posts, intending to make international trade cheaper, quicker, and simpler. This paper investigates the efficiency of these reforms and more specifically in what way the implementation of One-stop border posts in Uganda has affected cross-border trade flows in relation to traditional border crossings. This is achieved by using a Difference-in Differences framework accounting for two-way fixed effects to analyse cross-border trade flows between Uganda and its neighbours Kenya and Rwanda. The results show a significant positive effect of a 6.2 percent increase in trade flows obtained from One-stop border posts in relation to traditional border posts. Moreover, the results indicate that most of the effect is accounted for by traditionally time-sensitive products such as food and agricultural products, which have experienced a 22.9 percent increase in trade, while no significant effect is found on other types of products. (Less)
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author
Svensson, Kevin LU
supervisor
organization
course
NEKN01 20211
year
type
H1 - Master's Degree (One Year)
subject
keywords
Cross-border trade, Difference-in-Differences, One-stop border post, Trade facilitation, Uganda
language
English
id
9066966
date added to LUP
2022-01-17 09:34:31
date last changed
2022-01-17 09:34:31
@misc{9066966,
  abstract     = {{High costs, time delays, inefficiency and complicated border procedures when engaging in cross-border trade hinders competitiveness and economic development in many developing countries, such as Uganda. To try to reduce these obstacles and challenges, Uganda has implemented One-stop border posts, intending to make international trade cheaper, quicker, and simpler. This paper investigates the efficiency of these reforms and more specifically in what way the implementation of One-stop border posts in Uganda has affected cross-border trade flows in relation to traditional border crossings. This is achieved by using a Difference-in Differences framework accounting for two-way fixed effects to analyse cross-border trade flows between Uganda and its neighbours Kenya and Rwanda. The results show a significant positive effect of a 6.2 percent increase in trade flows obtained from One-stop border posts in relation to traditional border posts. Moreover, the results indicate that most of the effect is accounted for by traditionally time-sensitive products such as food and agricultural products, which have experienced a 22.9 percent increase in trade, while no significant effect is found on other types of products.}},
  author       = {{Svensson, Kevin}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Newer ways for fewer stays: An economic evaluation of One-stop border posts in Uganda}},
  year         = {{2021}},
}