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Trade Integration and Global Value Chains in Sub-Saharan Africa: In Pursuit of the Missing Link

Author

Listed:
  • Céline Allard
  • Mr. Jorge I Canales Kriljenko
  • Mr. Jesus R Gonzalez-Garcia
  • Emmanouil Kitsios
  • Mr. Juan P Trevino
  • Ms. Wenjie Chen

Abstract

This analysis of the extent of trade integration of sub-Saharan African (SSA) countries in the global economy as well as within the region over the 1995–2013 period focuses on four key concepts: (1) trade openness, captured by import and export flows; (2) the centrality in the global and regional trade network, a measure that takes into account not only the size of trade but also the number of trade partners and the respective weight of these trade partners in global trade; (3) gravity model estimates that account for country- and region-specific determinants of bilateral trade flows; and (4) global value chain (GVC) integration. Using both existing data and a newly available dataset based on multiregion input and output tables, this analysis led to several findings: (1) trade openness has increased strongly; (2) integration in the global economy has made the region more vulnerable to external shocks; (3) levels of trade flows emanating from sub-Saharan Africa are still only half the magnitude of those experienced elsewhere in the world; (4) the region still has ways to go to better integrate in GVCs; and (5) it is more critical than ever to make progress in filling the infrastructure gap by lowering tariff and nontariff barriers, improving the business climate and access to credit, and continuing to enhance education outcomes.

Suggested Citation

  • Céline Allard & Mr. Jorge I Canales Kriljenko & Mr. Jesus R Gonzalez-Garcia & Emmanouil Kitsios & Mr. Juan P Trevino & Ms. Wenjie Chen, 2016. "Trade Integration and Global Value Chains in Sub-Saharan Africa: In Pursuit of the Missing Link," IMF Departmental Papers / Policy Papers 2016/004, International Monetary Fund.
    • Handle: RePEc:imf:imfdps:2016/004
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    Citations

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    Cited by:

    1. Mold, Andrew & Munyegera, Kasim Ggombe & Mukwaya, Rodgers, 2022. "What Trade-in-Value added databases tell us about Continental Integration – and what it means for the AfCFTA," Conference papers 333505, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Hector Perez-Saiz & Mr. Jemma Dridi & Tunc Gursoy & Mounir Bari, 2019. "The Impact of Remittances on Economic Activity: The Importance of Sectoral Linkages," IMF Working Papers 2019/175, International Monetary Fund.
    3. Huw Lloyd-Ellis & Ardyn Nordstrom, 2021. "Trade, poverty and food security: A survey of recent research and its implications for East Africa," Working Paper 1460, Economics Department, Queen's University.
    4. Betty ASSE & Dalila CHENAF-NICET, 2021. "Note on the role of domestic and external demand on the process of premature deindustrialization," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 54, pages 145-160.
    5. Camara Kwasi Obeng & Peter Yeltulme Mwinlaaru & Isaac Kwesi Ofori, 2022. "Global Value Chain Participation and Inclusive Growth in Sub-Saharan Africa," Springer Books, in: Evelyn F. Wamboye & Bichaka Fayissa (ed.), The Palgrave Handbook of Africa’s Economic Sectors, pages 815-840, Springer.
    6. International Monetary Fund [IMF], 2018. "World Economic Outlook, April 2018: Cyclical Upswing, Structural Change," Working Papers id:12768, eSocialSciences.
    7. 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.

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