Trade Integration and Growth : Evidence from Sub-Saharan Africa

This paper examines the growth effects of different dimensions of international trade integration -- notably, volume, diversification, and natural resource dependence -- in Sub-Saharan Africa. First, the paper documents the recent trends in these...

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Main Authors:	Calderon, Cesar, Cantu, Catalina
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2019
Subjects:	TRADE POLICY DIVERSIFICATION TERMS OF TRADE NATURAL RESOURCES ECONOMIC GROWTH TRADE INTEGRATION TOTAL FACTOR PRODUCTIVITY TRADE OPENNESS EXPORT COMPETITIVENESS RESOURCE DEPENDENCE
Online Access:	http://documents.worldbank.org/curated/en/222931558366737099/Trade-Integration-and-Growth-Evidence-from-Sub-Saharan-Africa http://hdl.handle.net/10986/31737

id	okr-10986-31737
recordtype	oai_dc
spelling	okr-10986-317372022-09-15T12:18:56Z Trade Integration and Growth : Evidence from Sub-Saharan Africa Calderon, Cesar Cantu, Catalina TRADE POLICY DIVERSIFICATION TERMS OF TRADE NATURAL RESOURCES ECONOMIC GROWTH TRADE INTEGRATION TOTAL FACTOR PRODUCTIVITY TRADE OPENNESS EXPORT COMPETITIVENESS RESOURCE DEPENDENCE This paper examines the growth effects of different dimensions of international trade integration -- notably, volume, diversification, and natural resource dependence -- in Sub-Saharan Africa. First, the paper documents the recent trends in these foreign trade dimensions for the region and the traditional sources of growth. Second, it empirically estimates the impact of trade integration on growth per worker and the sources of growth; that is, growth of capital per worker and total factor productivity growth. To accomplish this task, the analysis uses a sample of non-overlapping five-year period observations for 173 countries from 1975 to 2014. The econometric evidence shows that increased trade openness, greater export production diversification, and reduced export dependence from natural resources will have a positive causal impact on economic growth. These effects will be mainly transmitted through faster capital accumulation or enhanced total factor productivity growth. Finally, the paper finds that, despite the progress exhibited in trade openness and diversification over the past decade, there are still potential benefits that can be accrued if countries were to deepen their integration to world trade. 2019-05-21T17:20:18Z 2019-05-21T17:20:18Z 2019-05 Working Paper http://documents.worldbank.org/curated/en/222931558366737099/Trade-Integration-and-Growth-Evidence-from-Sub-Saharan-Africa http://hdl.handle.net/10986/31737 English Policy Research Working Paper;No. 8859 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Sub-Saharan Africa
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	TRADE POLICY DIVERSIFICATION TERMS OF TRADE NATURAL RESOURCES ECONOMIC GROWTH TRADE INTEGRATION TOTAL FACTOR PRODUCTIVITY TRADE OPENNESS EXPORT COMPETITIVENESS RESOURCE DEPENDENCE
spellingShingle	TRADE POLICY DIVERSIFICATION TERMS OF TRADE NATURAL RESOURCES ECONOMIC GROWTH TRADE INTEGRATION TOTAL FACTOR PRODUCTIVITY TRADE OPENNESS EXPORT COMPETITIVENESS RESOURCE DEPENDENCE Calderon, Cesar Cantu, Catalina Trade Integration and Growth : Evidence from Sub-Saharan Africa
geographic_facet	Africa Sub-Saharan Africa
relation	Policy Research Working Paper;No. 8859
description	This paper examines the growth effects of different dimensions of international trade integration -- notably, volume, diversification, and natural resource dependence -- in Sub-Saharan Africa. First, the paper documents the recent trends in these foreign trade dimensions for the region and the traditional sources of growth. Second, it empirically estimates the impact of trade integration on growth per worker and the sources of growth; that is, growth of capital per worker and total factor productivity growth. To accomplish this task, the analysis uses a sample of non-overlapping five-year period observations for 173 countries from 1975 to 2014. The econometric evidence shows that increased trade openness, greater export production diversification, and reduced export dependence from natural resources will have a positive causal impact on economic growth. These effects will be mainly transmitted through faster capital accumulation or enhanced total factor productivity growth. Finally, the paper finds that, despite the progress exhibited in trade openness and diversification over the past decade, there are still potential benefits that can be accrued if countries were to deepen their integration to world trade.
format	Working Paper
author	Calderon, Cesar Cantu, Catalina
author_facet	Calderon, Cesar Cantu, Catalina
author_sort	Calderon, Cesar
title	Trade Integration and Growth : Evidence from Sub-Saharan Africa
title_short	Trade Integration and Growth : Evidence from Sub-Saharan Africa
title_full	Trade Integration and Growth : Evidence from Sub-Saharan Africa
title_fullStr	Trade Integration and Growth : Evidence from Sub-Saharan Africa
title_full_unstemmed	Trade Integration and Growth : Evidence from Sub-Saharan Africa
title_sort	trade integration and growth : evidence from sub-saharan africa
publisher	World Bank, Washington, DC
publishDate	2019
url	http://documents.worldbank.org/curated/en/222931558366737099/Trade-Integration-and-Growth-Evidence-from-Sub-Saharan-Africa http://hdl.handle.net/10986/31737
_version_	1764474982004424704

Trade Integration and Growth : Evidence from Sub-Saharan Africa

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