Discovering East Africa's Industrial Opportunities
What are East Africa's industrial opportunities? In this article we explore this question by using the Product Space to study the productive structure of five south-east African countries: Kenya, Mozambique, Rwanda, Tanzania and Zambia. The Product Space is a network connecting products that tend to be exported by the same sets of countries. Since countries are more likely to develop products that are close by in the Product Space to the ones that they already produce, the Product Space can be used to help anticipate a country's industrial opportunities. Our results suggest that the most natural avenue for future product diversification for these five south-east African nations resides in the agricultural sector, since all of these nations appear to have productive structures that are pre-adapted to the production of many agricultural products that none of them are currently exporting. We conclude this paper by exploring the potential benefits of further regional economic integration by doing an exercise in which we pull together the productive structures of these five countries. This exercise shows that the products that become more accessible in the combined economy are once again predominantly agricultural. These results suggest that while diversification into all sectors should remain an important long-term goal of the region, the path towards increased diversification in the near future may well lie in a more empowered and diverse agricultural sector.
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.:
- Hausmann, Ricardo & Klinger, Bailey & Lawrence, Robert Z., 2008. "Examining Beneficiation," Working Paper Series rwp08-030, Harvard University, John F. Kennedy School of Government.
- Ricardo Hausmann & Dani Rodrik, 2002.
"Economic Development as Self-Discovery,"
NBER Working Papers
8952, National Bureau of Economic Research, Inc.
- Hausmann, Ricardo & Rodrik, Dani, 2002. "Economic Development as Self Discovery," CEPR Discussion Papers 3356, C.E.P.R. Discussion Papers.
- Hausmann, Ricardo & Rodrik, Dani, 2002. "Economic Development as Self-Discovery," Working Paper Series rwp02-023, Harvard University, John F. Kennedy School of Government.
- Hausmann, Ricardo & Hwang, Jason & Rodrik, Dani, 2005.
"What You Export Matters,"
Working Paper Series
rwp05-063, Harvard University, John F. Kennedy School of Government.
- Frank Neffke & Martin Henning & Martin Ron Boschma, 2009.
"How do regions diversify over time? Industry relatedness and the development of new growth paths in regions,"
Papers in Evolutionary Economic Geography (PEEG)
0916, Utrecht University, Section of Economic Geography, revised Oct 2009.
- Frank Neffke & Martin Henning & Ron Boschma, 2011. "How Do Regions Diversify over Time? Industry Relatedness and the Development of New Growth Paths in Regions," Economic Geography, Clark University, vol. 87(3), pages 237-265, 07.
- Philippe Aghion & Peter Howitt, 2009.
"The Economics of Growth,"
MIT Press Books,
The MIT Press,
edition 1, volume 1, number 0262012634, June.
- C. A. Hidalgo & B. Klinger & A. -L. Barabasi & R. Hausmann, 2007. "The Product Space Conditions the Development of Nations," Papers 0708.2090, arXiv.org.
- Cesar A. Hidalgo & Ricardo Hausmann, 2009. "The Building Blocks of Economic Complexity," Papers 0909.3890, arXiv.org.
- Hausmann, Ricardo & Klinger, Bailey, 2006. "Structural Transformation and Patterns of Comparative Advantage in the Product Space," Working Paper Series rwp06-041, Harvard University, John F. Kennedy School of Government.
When requesting a correction, please mention this item's handle: RePEc:arx:papers:1203.0163. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (arXiv administrators)
If references are entirely missing, you can add them using this form.