Preferential trade agreements, employment and productivity: evaluating the impacts of AGOA and its apparel provisions on African firms

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Periodical article

Title:	Preferential trade agreements, employment and productivity: evaluating the impacts of AGOA and its apparel provisions on African firms
Author:	Mulangu, Francis
Year:	2015
Periodical:	Ghanaian journal of economics: a journal of the African Finance and Economics Consult (ISSN 2309-8945)
Volume:	3
Pages:	4-27
Language:	English
Geographic terms:	Subsaharan Africa United States
Subjects:	trade agreements employment international economic relations productivity private enterprises
External link:	https://hdl.handle.net/10520/EJC184834
Abstract:	The authors evaluate the impacts of the general African Growth and Opportunities Act (AGOA) and its provision on firm-level employment and productivity. Based on the Stolper-Samuelson theory, the authors hypothesize that AGOA would positively affect firm employment and productivity. Results show that while AGOA and its provision's impacts on employment are weak, they exert a positive impact on firm productivity. This productivity growth is due to a reallocation of economic activities from less productive to more productive firms. As sub-Saharan African countries consider new trade agreements, such as Economic Partnership Agreements (EPAs), the paper recommends a review of important factors, such as customs efficiency, business licensing and permit delays, and regulation burden, as they will influence the extent to which firms can benefit from these agreements. App., bibliogr., notes, ref., sum. [Journal abstract, edited]