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Market access, supplier access, and Africa's manufactured exports: A firm level analysis

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Author Info

  • Ibrahim Elbadawi
  • Taye Mengistae
  • Albert Zeufack

Abstract

In a large cross-country sample of manufacturing establishments drawn from 188 cities, average exports per establishments are smaller for African firms than for businesses in other regions. Based on the estimation of firm level exporting equations, we show that this is mainly because, on average, African firms face more adverse economic geography and operate in poorer institutional settings. One part of the effect of geography operates through Africa's lower 'foreign market access': African firms are located further away from wealthier or denser potential export markets. A second occurs through the region's lower 'supplier access': African firms face steeper input prices, partly because of their physical distance from cheaper foreign suppliers, and partly because domestic substitutes for importable inputs are more expensive. Africa's poorer institutions reduce its manufactured exports directly, as well as indirectly, by lowering foreign market access and supplier access. Both geography and institutions influence average firm level exports significantly more through their effect on the number of exporters than through their impact on how much each exporter sells onto foreign markets.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/09638190601037567
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal The Journal of International Trade & Economic Development.

Volume (Year): 15 (2006)
Issue (Month): 4 ()
Pages: 493-523

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Handle: RePEc:taf:jitecd:v:15:y:2006:i:4:p:493-523

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Web page: http://www.tandfonline.com/RJTE20

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Related research

Keywords: Economic geography; institutions; international trade; economic development; manufacturing; Africa;

References

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  1. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
  2. Sachs, Jeffrey D & Warner, Andrew M, 1997. "Sources of Slow Growth in African Economies," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 6(3), pages 335-76, October.
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  9. A. Wood & K. Jordan, 2000. "Why Does Zimbabwe Export Manufactures and Uganda Not? Econometrics Meets History," Journal of Development Studies, Taylor & Francis Journals, vol. 37(2), pages 91-116.
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Citations

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Cited by:
  1. Kearney, Colm, 2012. "Emerging markets research: Trends, issues and future directions," Emerging Markets Review, Elsevier, vol. 13(2), pages 159-183.
  2. Celbis, Mehmet Güney & Nijkamp, Peter & Poot, Jacques, 2013. "How big is the impact of infrastructure on trade? Evidence from meta-analysis," MERIT Working Papers 032, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  3. Calderon, Cesar & Serven, Luis, 2008. "Infrastructure and economic development in Sub-Saharan Africa," Policy Research Working Paper Series 4712, The World Bank.
  4. Thomas Gries & Wim Naudé & Marianne Matthee, 2009. "The Optimal Distance To Port For Exporting Firms," Journal of Regional Science, Wiley Blackwell, vol. 49(3), pages 513-528.

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