IDEAS home Printed from https://ideas.repec.org/p/pre/wpaper/202057.html
   My bibliography  Save this paper

Technological Trade Composition and Performance in African Countries

Author

Listed:
  • Blessing Chipanda

    (Department of Economics, University of Pretoria, Pretoria, 0002, South Africa)

  • Matthew Clance

    (Department of Economics, University of Pretoria, Pretoria, 0002, South Africa)

  • Steven F. Koch

    (Department of Economics, University of Pretoria, Pretoria, 0002, South Africa)

Abstract

A number of studies have found that spillovers or other externalities associated with trade are sector specific. Yet trade linkages are typically analysed at the macroeconomic aggregates. We analyse Africa's trade composition spanning 1980-2015, using a disaggregated and detailed classification by technological levels. We find that Africa is a net importer of capital goods and its technological export composition has remained highly concentrated in primary goods, which has contributed to a decline in Africa's share of global exports. We also find that regions within Africa have similar technological export composition structures. A few notable countries that have managed to transform their export composition into more semi-processed and relatively high technology exports are the leading importers of capital goods, are better financially developed and better endowed with human capital, infrastructure, and institutions than other African countries.

Suggested Citation

  • Blessing Chipanda & Matthew Clance & Steven F. Koch, 2020. "Technological Trade Composition and Performance in African Countries," Working Papers 202057, University of Pretoria, Department of Economics.
  • Handle: RePEc:pre:wpaper:202057
    as

    Download full text from publisher

    File URL: http://www.up.ac.za/media/shared/61/WP/wp_2020_57.zp190916.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Svetlana Andrianova & Badi Baltagi & Panicos Demetriades & David Fielding, 2015. "Why Do African Banks Lend So Little?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 77(3), pages 339-359, June.
    2. Piyusha Mutreja & Michael Sposi & B. Ravikumar, 2018. "Capital Goods Trade, Relative Prices and Economic Development," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 27, pages 101-122, January.
    3. Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2007. "What you export matters," Journal of Economic Growth, Springer, vol. 12(1), pages 1-25, March.
    4. Colantone, Italo & Crinò, Rosario, 2014. "New imported inputs, new domestic products," Journal of International Economics, Elsevier, vol. 92(1), pages 147-165.
    5. László Halpern & Miklós Koren & Adam Szeidl, 2015. "Imported Inputs and Productivity," American Economic Review, American Economic Association, vol. 105(12), pages 3660-3703, December.
    6. Diego Aboal & Valeria Arza & Flavia Rovira, 2017. "Technological content of exports," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 26(7), pages 661-682, October.
    7. Lee, Jong-Wha, 1995. "Capital goods imports and long-run growth," Journal of Development Economics, Elsevier, vol. 48(1), pages 91-110, October.
    8. Pinelopi Koujianou Goldberg & Amit Kumar Khandelwal & Nina Pavcnik & Petia Topalova, 2010. "Imported Intermediate Inputs and Domestic Product Growth: Evidence from India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(4), pages 1727-1767.
    9. Maurice Kugler & Eric Verhoogen, 2009. "Plants and Imported Inputs: New Facts and an Interpretation," American Economic Review, American Economic Association, vol. 99(2), pages 501-507, May.
    10. Keller, Wolfgang, 2002. "Trade and the Transmission of Technology," Journal of Economic Growth, Springer, vol. 7(1), pages 5-24, March.
    11. Joseph E. Stiglitz, 2018. "From manufacturing-led export growth to a twenty-first-century inclusive growth strategy: Explaining the demise of a successful growth model and what to do about it," WIDER Working Paper Series wp-2018-176, World Institute for Development Economic Research (UNU-WIDER).
    12. repec:bla:devpol:v:25:y:2007:i:5:p:575-598 is not listed on IDEAS
    13. Gloria Sheu, 2014. "Price, Quality, and Variety: Measuring the Gains from Trade in Differentiated Products," American Economic Journal: Applied Economics, American Economic Association, vol. 6(4), pages 66-89, October.
    14. Ibrahim, Muazu & Sare, Yakubu Awudu, 2018. "Determinants of financial development in Africa: How robust is the interactive effect of trade openness and human capital?," Economic Analysis and Policy, Elsevier, vol. 60(C), pages 18-26.
    15. Sanjaya Lall, 2000. "The Technological Structure and Performance of Developing Country Manufactured Exports, 1985-98," Oxford Development Studies, Taylor & Francis Journals, vol. 28(3), pages 337-369.
    16. Nancy Birdsall, 2007. "Do No Harm: Aid, Weak Institutions, and the Missing Middle in Africa," Working Papers 113, Center for Global Development.
    17. Castellani, Davide & Fassio, Claudio, 2017. "Export innovation: The role of new imported inputs and multinationality," Papers in Innovation Studies 2017/16, Lund University, CIRCLE - Centre for Innovation Research.
    Full references (including those not matched with items on IDEAS)

    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. Crinò, Rosario, 2012. "Imported inputs and skill upgrading," Labour Economics, Elsevier, vol. 19(6), pages 957-969.
    2. Sundar Ponnusamy, 2022. "Export specialization, trade liberalization and economic growth: a synthetic control analysis," Empirical Economics, Springer, vol. 63(2), pages 637-669, August.
    3. Colantone, Italo & Crinò, Rosario, 2014. "New imported inputs, new domestic products," Journal of International Economics, Elsevier, vol. 92(1), pages 147-165.
    4. Maria Bas & Vanessa Strauss-Kahn, 2014. "Does importing more inputs raise exports? Firm-level evidence from France," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(2), pages 241-275, May.
    5. Gnangnon, Sèna Kimm, 2020. "Aid for Trade, Export Product Diversification and Import Product Diversification," EconStor Preprints 223021, ZBW - Leibniz Information Centre for Economics.
    6. Maria Bas & Antoine Berthou, 2017. "Does Input-Trade Liberalization Affect Firms’ Foreign Technology Choice?," The World Bank Economic Review, World Bank, vol. 31(2), pages 351-384.
    7. Lawrence Edwards & Marco Sanfilippo & Asha Sundaram, 2016. "Importing and firm performance: New evidence from South Africa," WIDER Working Paper Series wp-2016-39, World Institute for Development Economic Research (UNU-WIDER).
    8. Doki, Naomi Onyeje & Shitile, Tersoo Shimonkabir & Sule, Abubakar, 2021. "Imported Intermediate Inputs and Manufactured Exports in Nigeria: The Role of Dual Exchange Rate Regime," African Journal of Economic Review, African Journal of Economic Review, vol. 9(1), January.
    9. Castellani, Davide & Fassio, Claudio, 2019. "From new imported inputs to new exported products. Firm-level evidence from Sweden," Research Policy, Elsevier, vol. 48(1), pages 322-338.
    10. Dayna Zaclicever & Andrea Pellandra, 2018. "Imported inputs, technology spillovers and productivity: firm-level evidence from Uruguay," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 154(4), pages 725-743, November.
    11. Fiorini, Matteo & Sanfilippo, Marco & Sundaram, Asha, 2021. "Trade liberalization, roads and firm productivity," Journal of Development Economics, Elsevier, vol. 153(C).
    12. Lawrence Edwards & Marco Sanfilippo & Asha Sundaram, 2016. "Importing and firm performance: New evidence from South Africa," WIDER Working Paper Series 039, World Institute for Development Economic Research (UNU-WIDER).
    13. Marco Grazzi & Nanditha Mathew & Daniele Moschella, 2021. "Making one’s own way: jumping ahead in the capability space and exporting among Indian firms," Journal of Evolutionary Economics, Springer, vol. 31(3), pages 931-957, July.
    14. Castellani, Davide & Fassio, Claudio, 2017. "Export innovation: The role of new imported inputs and multinationality," Papers in Innovation Studies 2017/16, Lund University, CIRCLE - Centre for Innovation Research.
    15. Lawrence Edwards & Marco Sanfilippo & Asha Sundaram, 2020. "Importing and Productivity: An Analysis of South African Manufacturing Firms," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(2), pages 411-432, September.
    16. Pol Antràs & Davin Chor, 2021. "Global Value Chains," NBER Working Papers 28549, National Bureau of Economic Research, Inc.
    17. Mo, Jiawei & Qiu, Larry D. & Zhang, Hongsong & Dong, Xiaoyu, 2021. "What you import matters for productivity growth: Experience from Chinese manufacturing firms," Journal of Development Economics, Elsevier, vol. 152(C).
    18. Gideon Ndubuisi & Solomon Owusu, 2021. "How important is GVC participation to export upgrading?," The World Economy, Wiley Blackwell, vol. 44(10), pages 2887-2908, October.
    19. Békés, Gábor & Hornok, Cecília & Muraközy, Balázs, 2016. "Globalization and the markups of European firms," Kiel Working Papers 2044, Kiel Institute for the World Economy (IfW Kiel).
    20. Chevassus-Lozza, Emmanuelle & Gaigné, Carl & Le Mener, Léo, 2013. "Does input trade liberalization boost downstream firms' exports? Theory and firm-level evidence," Journal of International Economics, Elsevier, vol. 90(2), pages 391-402.

    More about this item

    Keywords

    Exports; imports; trade composition;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F19 - International Economics - - Trade - - - Other
    • F60 - International Economics - - Economic Impacts of Globalization - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:pre:wpaper:202057. 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: Rangan Gupta (email available below). General contact details of provider: https://edirc.repec.org/data/decupza.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.