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Intra-African Trade

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Abstract

This paper examines why the intra-continental trade share in Africa is only 12%, compared to 47% in North America, 53% in Asia, and 69% in Europe. Results show that exports to other African countries decrease more quickly with distance and increase less quickly with economic size, than exports to non-African countries. The analysis investigates possible explanations and identifies factors that promote trade between African countries. Intra-African exports are found to disproportionately increase with infrastructure (especially roads), trade agreements, and a more efficient customs clearing process. Diversifying the domestic economy away from agriculture and towards services is also associated with more intra-African trade. These results can guide efforts to promote African economic integration.

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  • William W. Olney, 2020. "Intra-African Trade," Department of Economics Working Papers 2020-07, Department of Economics, Williams College.
    • Handle: RePEc:wil:wileco:2020-07
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    File URL: https://web.williams.edu/Economics/wp/Olney_African_Trade062020.pdf
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    More about this item

    Keywords

    intra-continental trade; exports; infrastructure; corruption; trade agreements; Africa;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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