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World Economy
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World Economy
Article . 2020 . Peer-reviewed
License: Wiley Online Library User Agreement
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Preprint . 2019
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Are African exports that weak? A trade in value added approach

Authors: Arnold Njike;

Are African exports that weak? A trade in value added approach

Abstract

AbstractAfrican countries are known to export less than any other group of countries in the world. Many studies have advanced that the main reason for this is the high level of transport costs due to the poor quality of transport infrastructures on the African continent. We first show that, depending on the estimator used, African countries as an aggregate do not necessarily trade a lower volume of gross exports than other countries on average, even though they clearly underperform in exports of final goods. This underperformance, reflected by the greater impact of bilateral trade costs such as distance on African exports of final goods compared to other countries, is not observed for African intermediate goods flows. Second, we formulate a model for trade in value added by adapting the standard gravity equation to take into account the structure of value added exports. The proposed model points up the importance of the indirect trade costs of third countries via which a country of origin's value added transits before reaching its final destination. When we control for these indirect trade costs in the value added trade estimation, the additional impact of the bilateral trade costs observed for African countries’ final goods exports is six times lower.

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    This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    8
    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Top 10%
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
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Powered by OpenAIRE graph
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
8
Top 10%
Average
Average
bronze