This paper, by Dr. Francis Mulangu, evaluates the impacts of the African Growth and Opportunity Act (AGOA) on firm-level employment and productivity in Sub-Saharan Africa.
The results indicate that AGOA and its apparel provision positively impacted productivity. However, their impacts on employment were limited to very large firms only. In addition, after observing the distributional impact of AGOA, we found evidence that AGOA’s productivity impacts are due to resource allocation from less productive to more productive firms.
On August 2, 2012, both houses of the United States Congress passed legislation to extend the third country apparel provision of AGOA which was scheduled to expire on September 30, 2012.Download publication (PDF, 808.4 KB)