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Preferential Market Access into the Chinese Market: How Good is it for Africa?

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  • Co, Catherine Y.

    ()
    (University of Nebraska at Omaha)

  • Dimova, Ralitza

    ()
    (University of Manchester)

Abstract

In 2005 China provided duty-free access to 190 items from 25 least developed sub-Saharan African (SSA) countries. Three years later duty-free access was extended to 454 items from 31 SSA LDCs. We find no evidence that China's preferential market access program for the least developed sub-Saharan African countries has helped these countries gain competitive edge over other exporters into the Chinese market. While there is evidence of decreased export bundle concentration and movement up the value chain for SSA countries involved in the program, the effect differs significantly across countries.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7908.

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Length: 39 pages
Date of creation: Jan 2014
Date of revision:
Handle: RePEc:iza:izadps:dp7908

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Keywords: preferential market access; export diversity and sophistication; triple difference; China; sub-Saharan Africa;

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  1. Jenkins, Rhys & Edwards, Chris, 2006. "The economic impacts of China and India on sub-Saharan Africa: Trends and prospects," Journal of Asian Economics, Elsevier, vol. 17(2), pages 207-225, April.
  2. Xu, Bin, 2010. "The sophistication of exports: Is China special?," China Economic Review, Elsevier, vol. 21(3), pages 482-493, September.
  3. Garth Frazer & Johannes Van Biesebroeck, 2007. "Trade Growth under the African Growth and Opportunity Act," NBER Working Papers 13222, National Bureau of Economic Research, Inc.
  4. Rodrik, Dani, 2006. "What's So Special About China's Exports?," CEPR Discussion Papers 5484, C.E.P.R. Discussion Papers.
  5. Oliver Morrissey, 2005. "Imports and Implementation: Neglected Aspects of Trade in the Report of the Commission for Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 41(6), pages 1133-1153.
  6. Gereffi, Gary, 1999. "International trade and industrial upgrading in the apparel commodity chain," Journal of International Economics, Elsevier, vol. 48(1), pages 37-70, June.
  7. Collier, Paul & Venables, Anthony J., 2007. "Rethinking Trade Preferences: How Africa Can Diversify its Exports," CEPR Discussion Papers 6262, C.E.P.R. Discussion Papers.
  8. Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2005. "What You Export Matters," NBER Working Papers 11905, National Bureau of Economic Research, Inc.
  9. Gabriel J. Felbermayr & Wilhelm Kohler, 2006. "Exploring the Intensive and Extensive Margins of World Trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(4), pages 642-674, December.
  10. Eichengreen, Barry & Irwin, Douglas A., 1995. "Trade blocs, currency blocs and the reorientation of world trade in the 1930s," Journal of International Economics, Elsevier, vol. 38(1-2), pages 1-24, February.
  11. Cline, William R., 1982. "Can the East Asian model of development be generalized?," World Development, Elsevier, vol. 10(2), pages 81-90, February.
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