Intra - Sub - Saharan African trade : is it too little?
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).
|Date of creation:||30 Nov 1993|
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- 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, International Association for Research in Income and Wealth, vol. 34(1), pages 1-25, March.
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- 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.
- Yeats, Alexander J, 1990. "Do African Countries Pay More for Imports? Yes," World Bank Economic Review, World Bank Group, vol. 4(1), pages 1-20, January.
- 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.
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