IDEAS home Printed from https://ideas.repec.org/a/ris/integr/0744.html
   My bibliography  Save this article

Measuring Trade Integration in Africa

Author

Listed:
  • Bouët, Antoine

    (IFPRI, Washington D.C)

  • Cosnard, Lionel

    (AgroParisTech)

  • Laborde, David

    (IFPRI, Washington D.C)

Abstract

This paper reviews the literature on the measurement and characterization of trade integration in Africa. We offer the complete evaluation of available indicators and methodologies. The indicators include those that have recently emerged from network analysis like indicators of trade in value-added commodities. It is concluded that Africa is characterized by weak trade integration, particularly with the rest ofthe world. This is naturally explained by high trading costs that are evaluated by tariffs, non-tariff measures, and other trade costs, such as those related to border and documentary compliance. The region’s small number of trading partners and low product diversification are also noticeable. However, the use of more refined indicators shows that intra-African trade is relatively high when compared with trade with other continents, contrary to what can be concluded from some simple trade share indicators.

Suggested Citation

  • Bouët, Antoine & Cosnard, Lionel & Laborde, David, 2017. "Measuring Trade Integration in Africa," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 32(4), pages 937-977.
  • Handle: RePEc:ris:integr:0744
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Robert Koopman & Zhi Wang & Shang-Jin Wei, 2014. "Tracing Value-Added and Double Counting in Gross Exports," American Economic Review, American Economic Association, vol. 104(2), pages 459-494, February.
    2. Julien Gourdon, 2014. "CEPII NTM-MAP: A Tool for Assessing the Economic Impact of Non-Tariff Measures," Working Papers 2014-24, CEPII research center.
    3. Charles Engel & John H. Rogers, 1998. "Relative Price Volatility: What Role Does the Border Play?," Discussion Papers in Economics at the University of Washington 0061, Department of Economics at the University of Washington.
    4. Guillaume Daudin & Christine Rifflart & Danielle Schweisguth, 2011. "Who produces for whom in the world economy?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 44(4), pages 1403-1437, November.
    5. Yongzheng Yang & Sanjeev Gupta, 2007. "Regional Trade Arrangements in Africa: Past Performance and the Way Forward," African Development Review, African Development Bank, vol. 19(3), pages 399-431.
    6. Alessandro Borin & Michele Mancini, 2015. "Follow the value added: bilateral gross export accounting," Temi di discussione (Economic working papers) 1026, Bank of Italy, Economic Research and International Relations Area.
    7. repec:hal:spmain:info:hdl:2441/9771 is not listed on IDEAS
    8. Giorgio Fagiolo & Javier Reyes & Stefano Schiavo, 2008. "The World-Trade Web: Topological Properties, Dynamics, and Evolution," LEM Papers Series 2008/16, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    9. David L. Hummels & Georg Schaur, 2013. "Time as a Trade Barrier," American Economic Review, American Economic Association, vol. 103(7), pages 2935-2959, December.
    10. Hamanaka, Shintaro, 2015. "The Selection of Trade Integration Indicators: Intraregional Share, Intensity, Homogeneous Intensity, and Introversion Index," ADB Economics Working Paper Series 455, Asian Development Bank.
    11. World Bank, 2016. "World Development Indicators 2016," World Bank Publications - Books, The World Bank Group, number 23969.
    12. Arribas, Iván & Pérez, Francisco & Tortosa-Ausina, Emili, 2006. "Measuring International Economic Integration: Theory and Evidence of Globalization," MPRA Paper 16010, University Library of Munich, Germany, revised 2006.
    13. Antoine Bouët & Yvan Decreux & Lionel Fontagné & Sébastien Jean & David Laborde, 2008. "Assessing Applied Protection across the World," Review of International Economics, Wiley Blackwell, vol. 16(5), pages 850-863, November.
    14. Vries, Gaaitzen J. de & Timmer, Marcel & Los, Bart, 2013. "Globalization or Regionalization? A New Approach to Measure International Fragmentation of Value Chains," GGDC Research Memorandum GD-138, Groningen Growth and Development Centre, University of Groningen.
    15. Gaulier, Guillaume & Zignago, Soledad, 2004. "Notes on BACI (analytical database of international trade). 1989-2002 version," MPRA Paper 32401, University Library of Munich, Germany.
    16. Raymond G. Riezman & John Whalley & Shunming Zhang, 2013. "Metrics capturing the degree to which individual economies are globalized," Applied Economics, Taylor & Francis Journals, vol. 45(36), pages 5046-5061, December.
    17. repec:hal:wpspec:info:hdl:2441/9771 is not listed on IDEAS
    18. Vinokurov, Evgeny, 2010. "The System of Indicators of Eurasian Integration," MPRA Paper 22227, University Library of Munich, Germany.
    19. Brenton, Paul & Portugal-Perez, Alberto & Regolo, Julie, 2014. "Food prices, road infrastructure, and market integration in Central and Eastern Africa," Policy Research Working Paper Series 7003, The World Bank.
    20. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    21. Bruno Versailles, 2012. "Market Intergration and Border Effects in Eastern Africa," CSAE Working Paper Series 2012-01, Centre for the Study of African Economies, University of Oxford.
    22. Bouet, Antoine & Mishra, Santosh & Roy, Devesh, 2008. "Does Africa trade less than it should, and if so, why?: The role of market access and domestic factors," IFPRI discussion papers 770, International Food Policy Research Institute (IFPRI).
    23. Parisa SAMIMI & Guan Choo LIM & Abdul Aziz BUANG, 2011. "Globalization Measurement: Notes on Common Globalization Indexes," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 1(7), pages 1-20, December.
    24. Houssein Guimbard & Sébastien Jean & Mondher Mimouni & Xavier Pichot, 2012. "MAcMap-HS6 2007, an Exhaustive and Consistent Measure of Applied Protection in 2007," International Economics, CEPII research center, issue 130, pages 99-122.
    25. Catherine Araujo Bonjean & Stéphanie Brunelin, 2013. "Le commerce agricole en Afrique de l'Ouest et du Centre : les frontières sont-elles abolies ?," Post-Print halshs-00829357, HAL.
    26. repec:cii:cepiei:2012-q2-130-5 is not listed on IDEAS
    27. Arjan Lejour & Hugo Rojas-Romagosa & Paul Veenendaal, 2017. "Identifying hubs and spokes in global supply chains using redirected trade in value added," Economic Systems Research, Taylor & Francis Journals, vol. 29(1), pages 66-81, January.
    28. Arnelyn Abdon & Jesus Felipe, 2011. "The Product Space: What Does It Say About the Opportunities for Growth and Structural Transformation of Sub-Saharan Africa?," Economics Working Paper Archive wp_670, Levy Economics Institute.
    29. World Bank, 2000. "Can Africa Claim the 21st Century?," World Bank Publications - Books, The World Bank Group, number 22962.
    30. Neil Balchin & Lawrence Edwards & Asha Sundaram, 2015. "A Disaggregated Analysis of Product Price Integration in the Southern African Development Community," Journal of African Economies, Centre for the Study of African Economies, vol. 24(3), pages 390-415.
    31. Rita Cappariello & Alberto Felettigh, 2015. "How does foreign demand activate domestic value added? A comparison among the largest euro-area economies," Temi di discussione (Economic working papers) 1001, Bank of Italy, Economic Research and International Relations Area.
    32. Harrison, Ann, 1996. "Openness and growth: A time-series, cross-country analysis for developing countries," Journal of Development Economics, Elsevier, vol. 48(2), pages 419-447, March.
    33. Tenreyro, Silvana, 2007. "On the trade impact of nominal exchange rate volatility," Journal of Development Economics, Elsevier, vol. 82(2), pages 485-508, March.
    34. Foroutan, Faezeh & Pritchett, Lant, 1993. "Intra-sub-Saharan African Trade: Is It Too Little?," Journal of African Economies, Centre for the Study of African Economies, vol. 2(1), pages 74-105, May.
    35. repec:dgr:rugggd:gd-138 is not listed on IDEAS
    36. World Bank, 2017. "World Development Indicators 2017," World Bank Publications - Books, The World Bank Group, number 26447.
    37. Andrew K. Rose, 2000. "One money, one market: the effect of common currencies on trade," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 15(30), pages 08-45.
    38. Caroline Lesser & Evdokia Moisé-Leeman, 2009. "Informal Cross-Border Trade and Trade Facilitation Reform in Sub-Saharan Africa," OECD Trade Policy Papers 86, OECD Publishing.
    39. Bruno Versailles, 2012. "Market Integration and Border Effects in Eastern Africa," Economics Series Working Papers WPS/2012-01, University of Oxford, Department of Economics.
    40. Rico Ihle & Stephan von Cramon-Taubadel & Sergiy Zorya, 2011. "Measuring the Integration of Staple Food Markets in Sub-Saharan Africa: Heterogeneous Infrastructure and Cross Border Trade in the East African Community," CESifo Working Paper Series 3413, CESifo.
    41. Raja Kali & Javier Reyes, 2007. "The architecture of globalization: a network approach to international economic integration," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 595-620, July.
    42. Robert Koopman & William Powers & Zhi Wang & Shang-Jin Wei, 2010. "Give Credit Where Credit Is Due: Tracing Value Added in Global Production Chains," NBER Working Papers 16426, National Bureau of Economic Research, Inc.
    43. Johnson, Robert C. & Noguera, Guillermo, 2012. "Accounting for intermediates: Production sharing and trade in value added," Journal of International Economics, Elsevier, vol. 86(2), pages 224-236.
    44. Catherine Araujo Bonjean & Stéphanie Brunelin, 2013. "Le commerce agricole en Afrique de l'Ouest et du Centre : les frontières sont-elles abolies ?," Revue d’économie du développement, De Boeck Université, vol. 21(1), pages 5-31.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bouët, Antoine & Elbehri, Aziz & Nguyen, Duc Bao & Traoré, Fousseini, 2022. "Measuring Agricultural Trade Integration in Southeast Asia," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 37(2), pages 235-266.
    2. Zouri, Stéphane, 2019. "Business cycles,bilateral trade and international financial intergration : Evidence from Economic Community of West African States (ECOWAS)," MPRA Paper 98748, University Library of Munich, Germany.
    3. Andreas Eberhard-Ruiz & Alexander Moradi, 2018. "Regional Market Integration and City Growth in East Africa: Local but no Regional Effects?," CSAE Working Paper Series 2018-09, Centre for the Study of African Economies, University of Oxford.
    4. Getachew Magnar Kitila & Fuzhong Chen, 2021. "Multilateral Trade Resistance, International Competitiveness and African International Exports: A Network Perspective," International Journal of Science and Business, IJSAB International, vol. 5(10), pages 111-126.
    5. Bouët, Antoine & Laborde, David & Traore, Fousseini, 2021. "On the optimality of Common External Tariffs in Africa: Evidence from the EAC Customs Union," Conference papers 330214, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Yvonne Umulisa, 2020. "Estimation of the East African Community's trade benefits from promoting intra‐regional trade," African Development Review, African Development Bank, vol. 32(1), pages 55-66, March.
    7. Emiko Fukase & Will Martin, 2016. "Agro-processing and horticultural exports from Africa," WIDER Working Paper Series wp-2016-174, World Institute for Development Economic Research (UNU-WIDER).
    8. Xiao Wang & Jinming Shi & Jia Li & Yu Chen & Jianxu Liu & Songsak Sriboonchitta, 2023. "Analysis on Trade Competition and Complementarity of High-Quality Agricultural Products in Countries along the Belt and Road Initiative," Sustainability, MDPI, vol. 15(8), pages 1-34, April.
    9. Ilaria Fusacchia & Jean Balié & Luca Salvatici, 2022. "The AfCFTA impact on agricultural and food trade: a value added perspective," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 49(1), pages 237-284.
    10. Johnson, Michael E. & Farris, Jarrad & Morgan, Stephen & Bloem, Jeffrey R. & Ajewole, Kayode & Beckman, Jayson, 2022. "Africa's Agricultural Trade: Recent Trends Leading up to the African Continental Free Trade Area," USDA Miscellaneous 333528, United States Department of Agriculture.
    11. Stender, Frederik & Vogel, Tim, 2021. "Murky trade waters: Regional tariff commitments and non-tariff measures in Africa," IDOS Discussion Papers 13/2021, German Institute of Development and Sustainability (IDOS).
    12. Zouri, Stéphane, 2019. "Business cycles,bilateral trade and international financial intergration : Evidence from Economic Community of West African States (ECOWAS)," MPRA Paper 95275, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Antimiani, Alessandro & Fusacchia, Ilaria & Salvatici, Luca, 2016. "Value Added Trade Restrictiveness Indexes. Measuring Protection with Global Value Chains," Conference papers 332745, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Laura Dell'Agostino, 2017. "Italy’S Participation In International Supply And Production Networks Using Value Added Trade Data," Departmental Working Papers of Economics - University 'Roma Tre' 0228, Department of Economics - University Roma Tre.
    3. Nenci, Silvia & Fusacchia, Ilaria & Giunta, Anna & Montalbano, Pierluigi & Pietrobelli, Carlo, 2022. "Mapping global value chain participation and positioning in agriculture and food: stylised facts, empirical evidence and critical issues," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 11(2), July.
    4. Ferraz, Lucas & Ribeiro, Marcel B. & Monastério, Pedro, 2015. "Connecting to Global Value Chains: The Dynamic General Equilibrium Effects of a PTA between China and Mercosur over the economy of Brazil," Conference papers 332666, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Jean Baliè & Davide Del Prete & Emiliano Magrini & Pierluigi Montalbano & Silvia Nenci, 2017. "Agriculture and Food Global Value Chains in Sub-Saharan Africa: Does bilateral trade policy impact on backward and forward participation?," Working Papers 03/2017, IMT School for Advanced Studies Lucca, revised Feb 2017.
    6. Baldwin, Richard & Freeman, Rebecca & Theodorakopoulos, Angelos, 2022. "Horses for courses: measuring foreign supply chain exposure," Bank of England working papers 996, Bank of England.
    7. Gabriele di Filippo, 2018. "What place does Luxembourg hold in global value chains?," BCL working papers 120, Central Bank of Luxembourg.
    8. Matteo Bugamelli & Silvia Fabiani & Stefano Federico & Alberto Felettigh & Claire Giordano & Andrea Linarello, 2018. "Back on Track? A Macro–Micro Narrative of Italian Exports," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 4(1), pages 1-31, March.
    9. João Amador & Sónia Cabral, 2017. "Networks of Value-added Trade," The World Economy, Wiley Blackwell, vol. 40(7), pages 1291-1313, July.
    10. Ilaria Fusacchia & Jean Balié & Luca Salvatici, 2022. "The AfCFTA impact on agricultural and food trade: a value added perspective," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 49(1), pages 237-284.
    11. Ferraz, Lucas Pedreira do Couto & Gutierre, Leopoldo & Cabral, Rodolfo Arruda, 2015. "The manufacturing industry in Brazil in the era of global value chains," Textos para discussão 402, FGV EESP - Escola de Economia de São Paulo, Fundação Getulio Vargas (Brazil).
    12. Borin, Alessandro & Mancini, Michele, 2017. "Follow the Value Added: Tracking Bilateral Relations in Global Value Chains," MPRA Paper 82692, University Library of Munich, Germany.
    13. Gunnella, Vanessa & Al-Haschimi, Alexander & Benkovskis, Konstantins & Chiacchio, Francesco & de Soyres, François & Di Lupidio, Benedetta & Fidora, Michael & Franco-Bedoya, Sebastian & Frohm, Erik & G, 2019. "The impact of global value chains on the euro area economy," Occasional Paper Series 221, European Central Bank.
    14. Njike, Arnold, 2019. "Are African exports that weak ? A trade in value-added approach," MPRA Paper 97658, University Library of Munich, Germany.
    15. Giovanni Cerulli & Silvia Nenci & Luca Salvatici & Antonio Zinilli, 2022. "Currency Unions and Global Value Chains: The Impact of the Euro on the Italian Value Added Exports," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 8(2), pages 373-407, July.
    16. Ferraz, Lucas & Diniz, André & Thorstensen, Vera, 2017. "How the Reduction of Regulatory Barriers to Trade in Services may Affect the Architecture of Global Value Chains: the Case of TISA," Conference papers 332856, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    17. Njike, Arnold, 2020. "Trade in value-added and the welfare gains of international fragmentation," MPRA Paper 100427, University Library of Munich, Germany.
    18. Araújo, Inácio Fernandes de & Perobelli, Fernando Salgueiro & Faria, Weslem Rodrigues, 2021. "Regional and global patterns of participation in value chains: Evidence from Brazil," International Economics, Elsevier, vol. 165(C), pages 154-171.
    19. Arnold Njike, 2021. "Are African exports that weak? A trade in value added approach," The World Economy, Wiley Blackwell, vol. 44(3), pages 733-755, March.
    20. Xu, Xueliu & Wang, Qian & Ran, Chenyang & Mu, Mingjie, 2021. "Is burden responsibility more effective? A value-added method for tracing worldwide carbon emissions," Ecological Economics, Elsevier, vol. 181(C).

    More about this item

    Keywords

    Trade Integration; Trade Indicators; Africa;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:integr:0744. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Yunhoe Kim (email available below). General contact details of provider: https://edirc.repec.org/data/desejkr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.