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Trade in Intermediate Inputs and Trade Facilitation in Africa's Regional Integration

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  • Siope Vakataki ‘Ofa
  • Stephen Karingi

Abstract

type="main" xml:lang="en"> Despite concerted efforts, Africa's regional integration process has encountered delays. Since the third stage of the Abuja Treaty in 2008, piecemeal progress has been observed. It therefore begs a difficult but relevant question: why is the regional integration process stalling? The conventional answer lies in challenges such as inadequate financial resources and infrastructure for trade among others. However, an approach is proposed to refocus regional integration on resource-based industrialization. The level of industrialization is examined in Africa using Balassa's Revealed Comparative Advantage Indexes based on the BACI dataset. Further, an input-output table analysis on production of Kenya's trade in intermediate inputs is done based on the GTAP 8 dataset. The analysis finds that while the level of industrialization is heterogeneous among African economies, the overall level is low. Also, in the case of Kenya and five regions in Africa, imported intermediate was found to be a critical input to production, lending support to the importance of trade facilitation measures in ensuring timely and cost-effective sourcing of inputs.

Suggested Citation

  • Siope Vakataki ‘Ofa & Stephen Karingi, 2014. "Trade in Intermediate Inputs and Trade Facilitation in Africa's Regional Integration," African Development Review, African Development Bank, vol. 26(S1), pages 96-110, November.
    • Handle: RePEc:bla:afrdev:v:26:y:2014:i:s1:p:96-110
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    Cited by:

    1. Simplice A. Asongu & Joseph Nnanna & Vanessa S. Tchamyou, 2020. "The comparative African regional economics of globalization in financial allocation efficiency: the pre-crisis era revisited," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 6(1), pages 1-41, December.
    2. Robert Wentrup & H. Richard Nakamura & Patrik Ström, 2020. "Closing the Digital Entrepreneurship Gap the Case of Returnee Entrepreneurs in Morocco," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 6(1), pages 140-162, January.
    3. Yannick Kitutila W., 2024. "Estimation of the public debt threshold effects on economic growth in sub‐Saharan African countries," African Development Review, African Development Bank, vol. 36(2), pages 377-390, June.
    4. Samba Diop & Simplice A. Asongu, 2020. "An Index of African Monetary Integration (IAMI)," Working Papers 20/003, European Xtramile Centre of African Studies (EXCAS).
    5. John Ssozi & Simplice A. Asongu, 2016. "The Comparative Economics of Catch-up in Output per Worker, Total Factor Productivity and Technological Gain in Sub-Saharan Africa," African Development Review, African Development Bank, vol. 28(2), pages 215-228, June.
    6. Françoise Okah Efogo, 2020. "Does trade in services improve African participation in global value chains?," African Development Review, African Development Bank, vol. 32(4), pages 758-772, December.
    7. Abdulkareem Alhassan & Joshua Dzankar Zoaka & Salim Hamza Ringim, 2021. "Africa as headwaiter at the dining table of global value chains: Do institutions matter for her participation?," African Development Review, African Development Bank, vol. 33(3), pages 560-576, September.
    8. Margarita Billon & Antonio Rodríguez‐Andrés & Ernesto Rodríguez‐Crespo, 2023. "Broadband use and trade facilitation: Impacts on bilateral trade of sub‐Saharan countries," African Development Review, African Development Bank, vol. 35(2), pages 113-125, June.
    9. Simplice Asongu & Vanessa Tchamyou, 2015. "The Comparative African Regional Economics of Globalization in Financial Allocation Efficiency," Working Papers of the African Governance and Development Institute. 15/053, African Governance and Development Institute..
    10. Kossi Edem Baita & Kwami Ossadzifo Wonyra, 2023. "Effet global du genre dans le développement des chaînes de valeur mondiales dans le contexte africain," African Development Review, African Development Bank, vol. 35(4), pages 365-375, December.
    11. Badassa W. Chala, 2024. "Effects of economic freedom and ease of doing business on trade in global value chains: Evidence from sub‐Saharan Africa," African Development Review, African Development Bank, vol. 36(1), pages 70-83, March.

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