Algeria-Mali trade: the normality of informality

This paper estimates the volume of informal trade between Algeria and Mali and analyzes its determinants and mechanisms, using a multi-pronged methodology. In addition to mirror statistics analysis, we provide evidence of the importance of informal trade, drawing on satellite images and surveys with...

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Bibliographic Details
Published in:Middle East development journal 2017-07, Vol.9 (2), p.161-183
Main Authors: Bensassi, Sami, Brockmeyer, Anne, Pellerin, Mathieu, Raballand, Gaël
Format: Article
Language:English
Subjects:
Algeria
customs
informal trade
Kidal
Mali
Poverty
Primates
smuggling
Statistics
Trade
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Summary:This paper estimates the volume of informal trade between Algeria and Mali and analyzes its determinants and mechanisms, using a multi-pronged methodology. In addition to mirror statistics analysis, we provide evidence of the importance of informal trade, drawing on satellite images and surveys with informal traders in Mali and Algeria. We estimate that the weekly turnover of informal trade fell from approximately US$2 million in 2011 to US$0.74 million in 2014, but that trade continues to play a crucial role in the economies of northern Mali and southern Algeria. We also show that official trade statistics are meaningless in this context because they capture less than 3% of total trade. Meanwhile, profit margins of 20-30% on informal trade help to explain the relative prosperity of northern Mali. Informal trade probably plays a strong role in poverty reduction, especially in the Kidal region.
ISSN:1793-8120
1793-8171
DOI:10.1080/17938120.2017.1353767