Export performance of developing countries under the Africa Growth and Opportunity Act

Abstract

PurposeThe purpose of this study is to assess the implications of US trade preferences under the African Growth and Opportunity Act (AGOA) and its impact on beneficiary country exports.Design/methodology/approachThe approach is to use Wilcoxon signed rank test and time series regression analysis using ARIMA.FindingsThe results largely indicate that AGOA has a positive but not significant effect on beneficiary exports to the USA for all country groups. Its effect is also quite marginal on sectoral exports except for textiles and apparel. Similarly, AGOA's effect is positive but not significant for all major exporters except Lesotho.Originality/valueA proper understanding of this relationship will help donors and recipients devise appropriate policies to help encourage the growth and diversification of exports that is so vital for developing countries.