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Full-Text Articles in Social and Behavioral Sciences
Infrastructure, Trade Facilitation, And Network Connectivity In Sub-Saharan Africa☆,☆☆, Ben Shepherd
Infrastructure, Trade Facilitation, And Network Connectivity In Sub-Saharan Africa☆,☆☆, Ben Shepherd
Journal of African Trade
This paper uses new measures of value added in exports in two sectors (textiles and clothing, and agriculture) to examine the linkages between trade facilitation and infrastructure on the one hand, and value chain participation on the other. It applies network analysis methods to derive a summary measure of value chain connectivity for 189 countries, including 44 in Sub-Saharan Africa. There is a statistically significant association between this measure and summary indicators of infrastructure development and trade facilitation performance. Moreover, it is not only a country's own performance that matters, but also that of its neighbors. The regional dimension of …
Trade And Economic Growth In Developing Countries: Evidence From Sub-Saharan Africa, Pam Zahonogo
Trade And Economic Growth In Developing Countries: Evidence From Sub-Saharan Africa, Pam Zahonogo
Journal of African Trade
This study investigates how trade openness affects economic growth in developing countries, with a focus on sub-Saharan Africa (SSA). We use a dynamic growth model with data from 42 SSA countries covering 1980 to 2012. We employ the Pooled Mean Group estimation technique, which is appropriate for drawing conclusions from dynamic heterogeneous panels by considering long-run equilibrium relations. The empirical evidence indicates that a trade threshold exists below which greater trade openness has beneficial effects on economic growth and above which the trade effect on growth declines. The evidence also indicates an inverted U-curve (Laffer Curve of Trade) response, robust …
Modelling The Economic Impact Of The Tripartite Free Trade Area: Its Implications For The Economic Geography Of Southern, Eastern And Northern Africa☆, Andrew Mold, Rodgers Mukwaya
Modelling The Economic Impact Of The Tripartite Free Trade Area: Its Implications For The Economic Geography Of Southern, Eastern And Northern Africa☆, Andrew Mold, Rodgers Mukwaya
Journal of African Trade
This study evaluates the economic impact of the proposed COMESA-SADC-EAC Tripartite Free Trade Area (TFTA) on 26 African countries. It uses the Global Trade Analysis Project (GTAP) computable general equilibrium (CGE) model and database to measure the static effects of the establishment of the TFTA on industrial production, trade flows and consumption in the TFTA. The results indicate a significant increase in intra-regional exports as a result of tariff elimination, boosting intra-regional trade by 29%. Particularly encouraging is the fact that the sectors benefiting most are manufacturing ones, such as light and heavy manufacturing, and processed food. Concerns have been …
Structural Change And Industrial Policy: A Case Study Of Ethiopia’S Leather Sector, Michael Mbate
Structural Change And Industrial Policy: A Case Study Of Ethiopia’S Leather Sector, Michael Mbate
Journal of African Trade
Recent empirical evidence underscores the vital role of industrial development in fostering structural change and promoting a country's long-run development objectives. Devising sound industrial policy institutions emerges as a key policy option to promote the reallocation of human, physical and financial resources to high value added sectors of the economy. This paper examines the rationale for industrial policy, why it has been ineffective in most African countries and what policy lessons should be distilled from past experiences. Using the Ethiopian leather and leather product sector, it examines how industrial policies are formulated and implemented in practice. The paper concludes by …
Trade Facilitation And Trade Participation: Are Sub-Saharan African Firms Different?☆, Abdoulaye Seck
Trade Facilitation And Trade Participation: Are Sub-Saharan African Firms Different?☆, Abdoulaye Seck
Journal of African Trade
Sub-Saharan Africa is the region where firms face the greatest hurdles when it comes to cross-border trading. This paper examines how these firms, relative to their counterparts in the developing world, would respond to changes in the trade environment as a result of trade facilitation reforms. Using data from World Bank's Enterprise Surveys, the paper suggests that improving customs clearance, government regulations, trade finance, and energy and telecommunication infrastructure contributes to increasing the probability of firms' entry into exporting and importing, as well as to the extent of their trade. The results also indicate that African firms tend to respond …