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International Demand Spillovers in South-South Exports: Application to Sub-Saharan Africa and Developing Asia

Author

Listed:
  • Tran, Thi Anh-Dao

    (CREAM, University of Rouen)

  • Diaw, Diadié

    (CREAM, University of Rouen)

  • Rieber, Arsène

    (CREAM, University of Rouen)

Abstract

This paper aims at analyzing how export performance of developing countries differs across destinations. With application to Sub-Saharan Africa and Asia, we first employ a gravity equation to break down each region’s export performance, separating the contribution of foreign market access from internal supply capacity. Then, we identify the key determinants of countries’export performance, both theoretically and empirically. Our contribution is to introduce demand spillovers that help market access to improve supply conditions. Regression reveals a positive interaction between the two components, with a higher elasticity of exports with respect to market access in the particular case of South-South trade flows.

Suggested Citation

  • Tran, Thi Anh-Dao & Diaw, Diadié & Rieber, Arsène, 2012. "International Demand Spillovers in South-South Exports: Application to Sub-Saharan Africa and Developing Asia," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 27, pages 410-436.
    • Handle: RePEc:ris:integr:0579
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    Cited by:

    1. Tran, Thi Anh-Dao & Phi, Minh Hong & Thai, Long, 2020. "Global value chains and the missing link between exchange rates and export diversification," International Economics, Elsevier, vol. 164(C), pages 194-205.
    2. Mania, Elodie & Rieber, Arsène, 2019. "Product export diversification and sustainable economic growth in developing countries," Structural Change and Economic Dynamics, Elsevier, vol. 51(C), pages 138-151.
    3. Thi Anh-Dao Tran & Minh Hong Phi & Long Thai, 2020. "Global value chains and the missing link between exchange rates and export diversification," Post-Print halshs-02972341, HAL.
    4. Elodie Mania & Arsène Rieber, 2019. "Product export diversification and sustainable economic growth in developing countries," Post-Print hal-02297128, HAL.

    More about this item

    Keywords

    Internal Supply Capacity; Foreign Market Access; Demand Spillovers; South South Trade; Sub-Saharan Africa; Developing Asia;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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