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This is shaping up to be a big year for US trade policy. Most eyes are on potential deals with the Pacific Rim and Europe (and reeling from Senator Reid’s latest blow to their prospects). Those of us concerned with trade as a driver for development should also be watching Congress’ and the Obama Administration’s review of the African Growth and Opportunity Act (AGOA).
Many countries in Africa suffer high rates of under-employment or low rates of productive employment; many also anticipate large numbers of people entering the workforce in the near future. It is estimated that the working age population will rise to almost 800 million in 2030, up from the current number of 466 million. In our new paper , we ask the question— are African firms employing fewer people than firms located in other parts of the world? And if so, why?
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