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Intra-African Trade

Author

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  • William W. Olney

    (University of Hawaii; Williams College)

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.

Suggested Citation

  • William W. Olney, 2020. "Intra-African Trade," Working Papers 202016, University of Hawaii at Manoa, Department of Economics.
    • Handle: RePEc:hai:wpaper:202016
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    File URL: http://www.economics.hawaii.edu/research/workingpapers/WP_20-16.pdf
    File Function: First version, 2020
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    More about this item

    Keywords

    COVID-19; CO2 emissions; fuel consumption; Global VAR (GVAR); conditional forecasts;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting

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