Up before Dawn : Experimental Evidence from a Cross-Border Trader Training at the Democratic Republic of Congo–Rwanda Border
Small-scale cross-border trade provides opportunities for economic gains in many developing countries. Yet cross-border traders -- many of whom are women -- face harassment and corruption, which can undermine these potential gains. This paper prese...
| Main Authors: | , , , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/797981580140722651/Up-before-Dawn-Experimental-Evidence-from-a-Cross-Border-Trader-Training-at-the-Democratic-Republic-of-Congo-Rwanda-Border http://hdl.handle.net/10986/33258 |
| Summary: | Small-scale cross-border trade provides
opportunities for economic gains in many developing
countries. Yet cross-border traders -- many of whom are
women -- face harassment and corruption, which can undermine
these potential gains. This paper presents evidence from a
randomized controlled trial of a training intervention that
provided access to information on procedures, tariffs, and
rights to small-scale traders to facilitate border
crossings, lower corruption, and reduce gender-based
violence along the Democratic Republic of Congo (DRC)–Rwanda
border. The training reduces bribe payment by 5 percentage
points in the full sample and by 27.5 percentage points on
average among compliers. The training also reduces the
incidence of gender-based violence by 5.4 percentage points
(30.5 percentage points among compliers). The paper assesses
competing explanations for the impacts using a
game-theoretic model based on Hirschman's Exit, Voice,
and Loyalty framework. The effects are achieved through
early border crossings at unofficial hours (exit) instead of
traders' use of voice mechanisms or reduced
rent-seeking from border officials. These results highlight
the need to improve governance and establish clear
cross-border trade regulations, particularly on the DRC side
of the border. |
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