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Why has export diversification been so hard to achieve in Africa?

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  • Paul Mosley

Abstract

This paper addresses two research issues to which Chris Milner has contributed: the role of trade policy in economic development, and the particular development case of Mauritius. On the first issue, the focus is on understanding why so few low†income countries, especially in Africa, have achieved a sustained level of export diversification. The paper argues that the standard “Washington Consensus†advice on trade policy placed too much emphasis on liberalisation alone and neglected the important role of government policy, in particular the potential to use targeted input subsidies to support the development of export sectors. Mauritius is then discussed as an example of relatively successful subsidy policies that enabled diversification of exports: indeed the only African country to achieve this in a sustained manner. Subsidies are not advocated as a panacea, and it is recognised that they are not always feasible or effective, but they can be part of an export diversification strategy that supports economic growth.

Suggested Citation

  • Paul Mosley, 2018. "Why has export diversification been so hard to achieve in Africa?," The World Economy, Wiley Blackwell, vol. 41(4), pages 1025-1044, April.
    • Handle: RePEc:bla:worlde:v:41:y:2018:i:4:p:1025-1044
    DOI: 10.1111/twec.12620
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    Cited by:

    1. Olzhas Shaizandaevich Adilkhanov & Orazaly Sabden, 2020. "Evaluation of export diversification on sustainable growth in Kazakhstan," RIVISTA DI STUDI SULLA SOSTENIBILITA', FrancoAngeli Editore, vol. 0(2), pages 49-63.
    2. Mireille N. Honoré & Luis J. Belmonte-Ureña & Asensio Navarro-Velasco & Francisco Camacho-Ferre, 2019. "Profit Analysis of Papaya Crops under Greenhouses as an Alternative to Traditional Intensive Horticulture in Southeast Spain," IJERPH, MDPI, vol. 16(16), pages 1-22, August.
    3. Mohammed Shakib, 2023. "Innovation-Export Diversification Nexus in Russian Regions: Does Trade Globalization, Business Potential and Geopolitics Matter?," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 22(4), pages 932-974.
    4. Sèna Kimm Gnangnon, 2020. "Export product diversification and tax performance quality in developing countries," International Economics and Economic Policy, Springer, vol. 17(4), pages 849-876, October.
    5. Ahmadou Aly Mbaye & Stephen Golub & Anastasia Vasilyeva, 2019. "Senegal’s International Competitiveness and Employment Creation for Women and Youth. The Product Space Analysis and Fieldwork Findings," Working Papers idrcdprusenegal, University of Cape Town, Development Policy Research Unit.
    6. Gnangnon, Sèna Kimm, 2024. "Effects of intellectual property rights protection on services export diversification in developing countries," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 46(1), pages 53-89.
    7. Paul Mosley & Abdul‐Gafaru Abdulai, 2020. "The political economy of progressive fiscal contracts in Africa and Latin America," Development Policy Review, Overseas Development Institute, vol. 38(4), pages 411-427, July.

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