Developing nations face widening trade cost gap, hampering economic growth
Trade costs have been decreasing from 1995 to 2010, but more rapidly in developed countries than in developing ones. This makes it harder for developing countries, especially in Sub-Saharan Africa and low-income countries, to trade with others. Factors like maritime transport and logistics performance greatly affect trade costs, sometimes even more than distance. Trade policies, both traditional and non-traditional, also play a big role in shaping how easy or difficult it is for countries to trade with each other.