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Intra - Sub - Saharan African trade : is it too little?

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Author Info
Foroutan, Faezeh
Pritchett, Lant

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Abstract

Trade among sub-Saharan African countries is very limited. This fact, plus other political and economic considerations, has been used to motivate a growing number of regional integration schemes. Although many authors have shown that intra-sub-Saharan African trade is limited, none has yet asked whether the level of intra-sub-Saharan African trade is higher or lower than one would expect, given a plausible model of the determination of trade flows. The authors compare actual trade with what a traditional gravity model would predict. They find that a gravity model predicts the low level of intra-sub-Saharan African trade. For the 19 sub-Saharan African countries in their sample, the actual sub-Saharan African share of imports plus exports was an average (median) of 8.1 percent (4.5 percent) while the gravity model predicts a slightly lower, not higher, mean (median) of 7.5 percent (4.5 percent).

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 1225.

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Date of creation: 30 Nov 1993
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Handle: RePEc:wbk:wbrwps:1225

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Keywords: TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT; Economic Theory&Research; Environmental Economics&Policies; Trade Policy; Common Carriers Industry;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Yeats, Alexander J, 1990. "Do African Countries Pay More for Imports? Yes," World Bank Economic Review, Oxford University Press, vol. 4(1), pages 1-20, January.
  2. Corden, W M, 1972. "Economies of Scale and Customs Union Theory," Journal of Political Economy, University of Chicago Press, vol. 80(3), pages 465-75, May-June. [Downloadable!] (restricted)
  3. Srivastava, Rajendra K & Green, Robert T, 1986. "Determinants of Bilateral Trade Flows," Journal of Business, University of Chicago Press, vol. 59(4), pages 623-40, October. [Downloadable!] (restricted)
  4. Deardorff, Alan V., 1984. "Testing trade theories and predicting trade flows," Handbook of International Economics, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 1, chapter 10, pages 467-517 Elsevier. [Downloadable!] (restricted)
  5. Summers, Robert & Heston, Alan, 1988. "A New Set of International Comparisons of Real Product and Price Levels Estimates for 130 Countries, 1950-1985," Review of Income and Wealth, Blackwell Publishing, vol. 34(1), pages 1-25, March.
  6. Harry G. Johnson, 1965. "An Economic Theory of Protectionism, Tariff Bargaining, and the Formation of Customs Unions," Journal of Political Economy, University of Chicago Press, vol. 73, pages 256. [Downloadable!] (restricted)
  7. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-16, March. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Bigsten, Arne & Durevall, Dick, 2002. "Is Globalisation Good for Africa?," Working Papers in Economics 67, Göteborg University, Department of Economics. [Downloadable!]
  2. Etienne B. Yehoue, 2005. "On the Pattern of Currency Blocs in Africa," IMF Working Papers 05/45, International Monetary Fund. [Downloadable!]
  3. Honohan, Patrick & Lane, Philip R., 2000. "Will the Euro trigger more monetary unions in Africa?," Policy Research Working Paper Series 2393, The World Bank. [Downloadable!]
    Other versions:
  4. Dhar, Sumana & Panagariya, Arvind, 1994. "Is East Asia less open than North America and the European Economic Community? No," Policy Research Working Paper Series 1370, The World Bank. [Downloadable!]
  5. Daniel Gbetnkom, 2006. "On the Empirics of Market Integration in ECOWAS," Journal of Policy Reform, Taylor and Francis Journals, vol. 9(4), pages 289-303, December. [Downloadable!] (restricted)
  6. Diao, Xinshen & Yanoma, Yukitsugu, 2003. "Exploring regional dynamics in Sub-Saharan African agriculture," DSGD discussion papers 2, International Food Policy Research Institute (IFPRI). [Downloadable!]
  7. Romain Houssa, 2004. "Monetary Union in West Africa and Asymmetric Shocks: A Dynamic Structural Factor Model Approach," Development and Comp Systems 0409063, EconWPA. [Downloadable!]
  8. Limao, Nuno & Venables, Anthony J., 1999. "Infrastructure, geographical disadvantage, and transport costs," Policy Research Working Paper Series 2257, The World Bank. [Downloadable!]
  9. Anna Maria Mayda & Chad Steinberg, 2007. "Do South-South Trade Agreements Increase Trade? Commodity-Level Evidence from COMESA," IMF Working Papers 07/40, International Monetary Fund. [Downloadable!]
    Other versions:
  10. Souleymane Coulibaly & Lionel Fontagne, 2004. "South – South Trade: Geography Matters," Working Papers 2004-08, CEPII research center. [Downloadable!]
    Other versions:
  11. Abdulai, Awudu & Diao, Xinshen & Johnson, Michael, 2005. "Achieving regional growth dynamics in African agriculture," DSGD discussion papers 17, International Food Policy Research Institute (IFPRI). [Downloadable!]
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