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Economic Geography and Economic Development in Sub-Saharan Africa

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  • Maarten Bosker
  • Harry Garretsen

Abstract

The physical or absolute geography of Sub-Saharan Africa (SSA) is often blamed for its poor economic performance. A country’s location however not only determines its absolute geography, it also pins down its relative position on the globe vis-à-vis other countries. This paper assesses the importance of relative geography, and access to foreign markets in particular, in explaining the substantial income differences between SSA countries. We base our empirical analysis on a new economic geography model. We first construct a measure of each SSA country’s market access based on bilateral trade flows and then assess the relevance of market access for economic development. In doing so, we explicitly distinguish between the importance of access to other SSA markets and to the rest of world respectively. We find that market access, and notably intra-SSA market access, has a significant positive effect on GDP per capita. This indicates that improving SSA market access (e.g. by investing in intra- SSA infrastructure or through increased SSA integration) will have substantial positive effects on its future economic development.

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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 2490.

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Date of creation: 2008
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Handle: RePEc:ces:ceswps:_2490

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Keywords: Sub Saharan Africa; economic development; economic geography; market access;

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References

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Citations

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Cited by:
  1. Keith Head & Thierry Mayer, 2011. "Gravity, market potential and development," Sciences Po publications info:hdl:2441/c8dmi8nm4pd, Sciences Po.
  2. Hamaguchi, Nobuaki, 2011. "Evidence from Spatial Correlation of Poverty and Income in Kenya," Working Papers 35, JICA Research Institute.
  3. Buzasi, Katalin, 2012. "Does colonialism have an impact on the current language situation in Sub-Saharan Africa?," MPRA Paper 42791, University Library of Munich, Germany.
  4. Holger Breinlich & Gianmarco I. P. Ottaviano & Jonathan R. W. Temple, 2013. "Regional Growth and Regional Decline," CEP Discussion Papers dp1232, Centre for Economic Performance, LSE.

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