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Economic Geography and Economic Development in Sub-Saharan Africa

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Author Info
Maarten Bosker ()
Harry Garretsen ()

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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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Publisher Info
Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number CESifo Working Paper No. 2490.

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

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

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Find related papers by JEL classification:
F10 - International Economics - - Trade - - - General
O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
O19 - Economic Development, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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  3. Van Biesebroeck, Johannes, 2005. "Exporting raises productivity in sub-Saharan African manufacturing firms," Journal of International Economics, Elsevier, vol. 67(2), pages 373-391, December. [Downloadable!] (restricted)
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  5. Puga, Diego, 1999. "The rise and fall of regional inequalities," European Economic Review, Elsevier, vol. 43(2), pages 303-334, February. [Downloadable!] (restricted)
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  6. Ibrahim Elbadawi & Taye Mengistae & Albert Zeufack, 2006. "Market access, supplier access, and Africa's manufactured exports: A firm level analysis," Journal of International Trade & Economic Development, Taylor and Francis Journals, vol. 15(4), pages 493-523, December. [Downloadable!] (restricted)
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  11. Head, Keith & Mayer, Thierry, 2004. "The empirics of agglomeration and trade," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 59, pages 2609-2669 Elsevier. [Downloadable!] (restricted)
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  12. Amiti, Mary & Smarzynska Javorcik, Beata, 2008. "Trade costs and location of foreign firms in China," Journal of Development Economics, Elsevier, vol. 85(1-2), pages 129-149, February. [Downloadable!] (restricted)
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  13. Paul Collier & Jan Willem Gunning, 1999. "Explaining African Economic Performance," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 64-111, March. [Downloadable!] (restricted)
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  14. Rosenthal, Stuart S. & Strange, William C., 2004. "Evidence on the nature and sources of agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 49, pages 2119-2171 Elsevier. [Downloadable!] (restricted)
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