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Agriculture and Food Global Value Chains in Sub-Saharan Africa: Does bilateral trade policy impact on backward and forward participation?

Author

Listed:
  • Jean Baliè

    (FAO)

  • Davide Del Prete

    (IMT School for Advanced Studies Lucca; FAO)

  • Emiliano Magrini

    (FAO)

  • Pierluigi Montalbano

    (Sapienza University; University of Sussex)

  • Silvia Nenci

    (University of Roma 3)

Abstract

The most recent literature on international trade highlights the key role of global value chains (GVCs) in structural transformation, development and growth. The common perception is that Africa, unlike most Latin American and Asian countries, has neither been able to intercept the main changes in trade patterns nor enter massively into global production networks. This work provides some insight into this topic. Using the EORA Input-Output Tables, we analyze whether bilateral import tariffs and shifts in trade regimes associated with regional trade agreements affect the backward participation (i.e., the use of foreign inputs for exports) and forward participation (i.e., the use of domestic intermediates in third country exports) of the SSA countries agriculture and food GVCs. Our results show that, despite their low world trade shares, GVC participation in SSA economies is increasing over time, mainly upstream as suppliers of unprocessed inputs. Furthermore, we show that the value added demand for SSA agricultural products primarily originates from the EU and emerging countries rather than from regional partners. Finally, by making use of a gravity-like identification strategy, we also find evidence that bilateral trade protection significantly affects GVC backward and forward participation in agriculture and food. These results call for a refinement of trade policy priorities in SSA.

Suggested Citation

  • Jean Baliè & Davide Del Prete & Emiliano Magrini & Pierluigi Montalbano & Silvia Nenci, 2017. "Agriculture and Food Global Value Chains in Sub-Saharan Africa: Does bilateral trade policy impact on backward and forward participation?," Working Papers 03/2017, IMT School for Advanced Studies Lucca, revised Feb 2017.
  • Handle: RePEc:ial:wpaper:3/2017
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    Cited by:

    1. Luca Salvatici & Silvia Nenci, 2017. "New features, forgotten costs and counterfactual gains of the international trading system," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 44(4), pages 592-633.
    2. Sabwa, Nicholas & Collins, Julia, 2018. "Major developments affecting Africa’s trade performance: A summary of key literature," IFPRI book chapters, in: Africa agriculture trade monitor 2018, chapter 6, pages 110-130, International Food Policy Research Institute (IFPRI).
    3. Montalbano, Pierluigi & Nenci, Silvia & Pietrobelli, Carlo, 2017. "Opening and linking up: Firms, global value chains and productivity in Latin America," MERIT Working Papers 2017-030, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Luca Salvatici & Alessandro Antimiani & Fusacchia Ilaria, 2018. "Value Added Trade Restrictiveness Indexes. Measuring Protection Within Global Value Chains," Departmental Working Papers of Economics - University 'Roma Tre' 0238, Department of Economics - University Roma Tre.

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    More about this item

    Keywords

    global value chains; agro-food activities; multi-region input-output tables; bilateral trade policies; gravity model; Sub-Saharan Africa;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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