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Does international trade stimulate structural change in Africa?

Author

Listed:
  • Doukoure Charles Fe

    (Ecole Nationale Supérieure de Statistique et d'Economie Appliquée (ENSEA))

  • Romain Kouakou N'guessan

    (Ecole Nationale Supérieure de Statistique et d'Economie Appliquée (ENSEA))

Abstract

While several empirical studies established a strong link between trade and growth, few studies have looked at the relationship between international trade and African structural change. This study attempts to shed empirical light on this latest relationship. It proposes a theoretical relationship between international trade and structural change through the channel of the percentage of manufactured products in total exports. Based on a panel model of 31 African countries from 1995 to 2017, empirical results show that the number of products shipped remains the catalyst for structural change in Africa. However, this factor has a marginal effect. So, yes, international trade can stimulate structural change in Africa, but it is necessary to move ahead by adding value to trading products to make progress and strength structural change.

Suggested Citation

  • Doukoure Charles Fe & Romain Kouakou N'guessan, 2023. "Does international trade stimulate structural change in Africa?," Economics Bulletin, AccessEcon, vol. 43(1), pages 644-663.
    • Handle: RePEc:ebl:ecbull:eb-22-00385
    as

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    References listed on IDEAS

    as
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    3. RUI MaO & YANG YAO, 2012. "Structural Change In A Small Open Economy: An Application To South Korea," Pacific Economic Review, Wiley Blackwell, vol. 17(1), pages 29-56, February.
    4. Nadege Desiree Yameogo & Tiguune Nabassaga & Abebe Shimeles & Mthuli Ncube, 2014. "Diversification and Sophistication as drivers of structural transformation for Africa: The Economic Complexity Index of African Countries," Journal of African Development, African Finance and Economic Association (AFEA), vol. 16(2), pages 1-31.
    5. Reto Foellmi & Josef Zweim�ller, "undated". "Structural Change and the Kaldor Facts of Economic Growth," IEW - Working Papers 111, Institute for Empirical Research in Economics - University of Zurich.
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    More about this item

    Keywords

    International trade; Structural change;

    JEL classification:

    • F1 - International Economics - - Trade
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

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