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Algeria-Mali Trade : The Normality of Informality

TARIFFS PROFIT MARGINS PRODUCTION UNDERVALUATION CHAMBERS OF COMMERCE PASSENGERS FOREIGN INVESTORS VEHICLES EXPORTS TREND GASOLINE JOURNEY INCENTIVES DISTRIBUTION SUBSIDY TRAFFIC TAX ROUTES TAKEOVER PAYMENTS QUALITY INTERNATIONAL TRANSIT DRIVERS CUSTOMS CLEARANCE TRADE AGREEMENTS CUSTOMS DUTIES VEHICLE PREFERENTIAL TRADE AGREEMENTS FISCAL POLICIES TRADE IN GOODS IMPORT DATA TRADE BALANCE FOREIGN TRADE ROAD CARGO COSTS TRANSPORT EXCHANGE RATES CUSTOMS CONTAINERS MONOPOLY EXPORT VOLUME CRITERIA TRANSPORT OF GOODS DEBT PROFIT RATE TRUE HARMONIZED SYSTEM IMPORTS TRADE POLICY PORTS TRADE AGREEMENT GROSS DOMESTIC PRODUCT FUEL CONSUMPTION ROUTE FUELS IMPORT DECLARATION SUBSIDIES TRANSIT TIMES COLLECTED TARIFFS INFRASTRUCTURE TAXES EXPORT VALUE TRADE ROUTES MANUFACTURING TRADE VOLUME CONSUMPTION VALUE ADDED TRADE BALANCES TRAVEL TRANSPORTATION TRANSIT POLICIES CUSTOMS OFFICIALS BORDER CROSSING TRUCKS SHIPPING CONTRABAND POLICE TRUCK TRAFFIC CARS VALUE CARGOES CUSTOMS AUTHORITIES IMPORT VALUES MEANS OF TRANSPORT PURCHASING POWER POPULATION DENSITY CONSUMERS FUEL PRICES EXPORT REVENUE FOREIGN EXCHANGE TRADE SURPLUS ROADS CAR CROSSING TRADE DATA TRADE ECONOMIC INTEGRATION GDP GOODS COST OF TRANSPORT SUPPLY CHAINS BORDER MANAGEMENT TRANSPORT ACTIVITY CUSTOMS OFFICES INTERNATIONAL AGREEMENT PREFERENTIAL TRADE TARIFF FUEL DISTRIBUTION NETWORK SUPPLY OVERVALUATION CUSTOMS DUTY REFRIGERATORS TARIFF RATE SODIUM TRANSPORT COSTS DIESEL OUTCOMES ROAD TRANSPORT COMMODITY IMPORT VALUE CUSTOMS DECLARATIONS TIRES FREIGHT PRICES TONNAGE STORAGE
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World Bank, Washington, DC
Middle East and North Africa | Algeria | Mali
2015-12-15T20:16:31Z | 2015-12-15T20:16:31Z | 2015-03-22

This paper estimates the volume of informal trade between Algeria and Mali and analyzes its determinants and mechanisms, using a multi-pronged methodology. First, the authors discuss how subsidy policies and the legal framework create incentives for informal trade across the Sahara. Second, the authors provide evidence of the importance of informal trade, drawing on satellite images and surveys with informal traders in Mali and Algeria. The authors estimate that the weekly turnover of informal trade fell from approximately United States (U.S.) 2 million dollars in 2011 to U.S. 0.74 million dollars in 2014, but continues to play a crucial role in the economies of northern Mali and southern Algeria. Profit margins of 20-30 percent on informal trade contribute to explaining the relative prosperity of northern Mali. The authors also show that official trade statistics are meaningless in this context, as they capture less than 3 percent of total trade. Finally, the authors provide qualitative evidence on informal trade actors and mechanisms for the most frequently traded products.

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