Trade Integration, Export Patterns, and Growth in Sub-Saharan Africa
This paper examines systematically the growth effects of trade integration in Sub-Saharan Africa. It complements and improves upon the empirical literature in two aspects: first, it jointly estimates the impact of different dimensions of trade inte...
Main Authors: | , , |
---|---|
Format: | Working Paper |
Language: | English |
Published: |
World Bank, Washington, DC
2020
|
Subjects: | |
Online Access: | http://documents.worldbank.org/curated/en/812731580315829595/Trade-Integration-Export-Patterns-and-Growth-in-Sub-Saharan-Africa http://hdl.handle.net/10986/33268 |
Summary: | This paper examines systematically the
growth effects of trade integration in Sub-Saharan Africa.
It complements and improves upon the empirical literature in
two aspects: first, it jointly estimates the impact of
different dimensions of trade integration, namely, trade
volumes, export/trade patterns by product (primary and
manufacturing goods), and by destination (inter- and
intra-regional). Second, it estimates the impact of trade
integration on economic growth and its sources, that is,
capital accumulation and total factor productivity growth.
The analysis finds causal evidence that trade integration
fosters growth. Additionally, manufacturing trade boosts
growth and trade in primary goods hampers growth. Doubling
the manufacturing trade share in Sub-Saharan Africa's
gross domestic product would increase growth by 1.9
percentage points per year, while increases in primary trade
reduce growth by 1 percentage point. This impact is mainly
transmitted through lower capital accumulation. Finally,
inter- and intra-regional trade have a positive impact on
growth in Sub-Saharan Africa. Doubling inter-regional trade
will increase growth by 1.9 percentage points, and the same
increase for intra-regional trade enhances growth by 0.6
percentage points. The effects of inter-regional trade are
transmitted primarily through capital accumulation, while
those of intra-regional trade are channeled through enhanced
total factor productivity growth. |
---|