International Demand Spillovers in South-South Exports: Application to Sub-Saharan Africa and Developing Asia
AbstractThis paper aims at analyzing how export performance of developing countries differs across destinations. With application to Sub-Saharan Africa and Asia, we first employ a gravity equation to break down each region’s export performance, separating the contribution of foreign market access from internal supply capacity. Then, we identify the key determinants of countries’export performance, both theoretically and empirically. Our contribution is to introduce demand spillovers that help market access to improve supply conditions. Regression reveals a positive interaction between the two components, with a higher elasticity of exports with respect to market access in the particular case of South-South trade flows.
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Bibliographic InfoArticle provided by Center for Economic Integration, Sejong University in its journal Journal of Economic Integration.
Volume (Year): 27 (2012)
Issue (Month): ()
Internal Supply Capacity; Foreign Market Access; Demand Spillovers; South South Trade; Sub-Saharan Africa; Developing Asia;
Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F15 - International Economics - - Trade - - - Economic Integration
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
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