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The African Growth and Opportunity Act (AGOA) and export diversification

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  • Nathaniel P.S. Cook
  • Jason Cannon Jones

Abstract

This paper explores the effect of the African Growth and Opportunity Act (AGOA) on export diversification in Sub-Saharan Africa. The existing empirical studies suggest that AGOA has had a positive effect on the overall volume of trade between Sub-Saharan Africa and the United States. However, the economic development literature emphasizes the importance of export diversification for developing countries; therefore, it is important to understand the effects of AGOA on the extensive margin of trade (i.e. the number of distinct products a country exports). Our empirical results suggest that AGOA does contribute to export diversification, specifically through its apparel provision. Countries that are eligible for the AGOA apparel provision export not only more apparel products, but also more non-apparel products to the USA. Thus, AGOA contributes to export diversification at the extensive margin of trade with the USA.

Suggested Citation

  • Nathaniel P.S. Cook & Jason Cannon Jones, 2015. "The African Growth and Opportunity Act (AGOA) and export diversification," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 24(7), pages 947-967, October.
    • Handle: RePEc:taf:jitecd:v:24:y:2015:i:7:p:947-967
    DOI: 10.1080/09638199.2014.986663
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    Citations

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    Cited by:

    1. Dalibor Gottwald & Libor Švadlenka & Hana Pavlisová, 2016. "Human Capital and Growth of E-postal Services: A cross-country Analysis in Developing Countries," Post-Print hal-01307145, HAL.
    2. Temprano Arroyo, Heliodoro, 2018. "Promoting labour market integration of refugees with trade preferences: Beyond the EU-Jordan compact," Kiel Working Papers 2108, Kiel Institute for the World Economy (IfW Kiel).
    3. Mora, Jesse & Olabisi, Michael, 2023. "Economic development and export diversification: The role of trade costs," International Economics, Elsevier, vol. 173(C), pages 102-118.
    4. Kinfack, Emilie & Bonga-Bonga, Lumengo, 2020. "Trade Linkages and Business Cycle Co-movement: Analysis of Trade between African Economies and their Main Trading partners," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 73(2), pages 275-306.
    5. Mullings, Robert & Mahabir, Aruneema, 2018. "Growth by Destination: The Role of Trade in Africa’s Recent Growth Episode," World Development, Elsevier, vol. 102(C), pages 243-261.
    6. Coniglio, Nicola D. & Vurchio, Davide & Cantore, Nicola & Clara, Michele, 2021. "On the evolution of comparative advantage: Path-dependent versus path-defying changes," Journal of International Economics, Elsevier, vol. 133(C).
    7. M.R. Malefane, 2023. "Economic implications of external monetary policy shocks for Lesotho: An empirical investigation," Journal of Economic Policy and Management Issues, JEPMI, vol. 2(2), pages 65-75.
    8. Nathaniel P. S. Cook & Jason C. Jones, 2021. "The African Growth and Opportunity Act and growth in sub‐Saharan Africa: A local projection approach," The World Economy, Wiley Blackwell, vol. 44(1), pages 234-261, January.

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