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Research . 2016
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Democratic Republic of Congo

Authors: Bou-Habib, Chadi; Kebede, Ephraim;

Democratic Republic of Congo

Abstract

The high level of exports and their product and market concentration exposes the Democratic Republic of Congo to the economic fluctuations of the country's trade partners. This paper uses the United Nations Conference on Trade and Development trade data set to analyze the Democratic Republic of Congo's export patterns for the period 1960-2014. The data confirm that the country's exports remain highly concentrated. The product concentration on minerals is high and reaches exceptional levels. The geographic concentration is also high, while there is a shift in destinations. Hence, EU27, traditionally the main market destination for the Democratic Republic of Congo, lost its importance to China for most of the past decade. This trend continued to increase in the past few years from 2010 to 2013. The clear prevalence of commodity products within the Democratic Republic of Congo's exports and the higher exposure to the Chinese economic cycle are sources of vulnerability. The empirical analysis indicates that the country's exports appear to be significantly sensitive to foreign demand fluctuations. This exposure increases the volatility of the country's macroeconomic framework to exogenous shocks, with negative consequences on growth in gross domestic product and on external balances. The analysis concludes that increasing the Democratic Republic of Congo's resilience requires product and market diversification of exports. This diversification requires improvements in the investment climate and business environment, with emphasis on skills and infrastructure.

Country
United States
Related Organizations
Keywords

EXPORT PATTERNS, MONETARY POLICIES, CUSTOMS, AGRICULTURE, INVESTMENT, DEMAND, ECONOMIC FLUCTUATIONS, DEVELOPED COUNTRIES, VALUE ADDED, GRAVITY MODEL, ECONOMIC GROWTH, GROSS DOMESTIC PRODUCT, EXTERNAL SHOCKS, SURPLUS, PRODUCT, GDP, MACROECONOMIC STABILITY, MONOPOLISTIC COMPETITION, EXPORT MARKETS, EXPORT DIVERSIFICATION, VALUE, INCOME, MACROECONOMICS, EXPORTS, INVESTMENTS, FOREIGN MARKETS, FINANCIAL CRISIS, TRADE FACILITATION, REGULATORY FRAMEWORK, EXOGENOUS SHOCKS, HUMAN CAPITAL, MERCHANDISE EXPORTS, GOODS, SUPPLY CHAIN, CURRENCY, TRADE DATA, PRICE, EXPORT BASKET, ACCESS, TRADE FLOWS, CURRENT ACCOUNT, EXPORT SHARE, BILATERAL TRADE, 330, LDCS, MERCHANDISE, EXPORT PROMOTION, INTERNATIONAL MARKET, FOREIGN CURRENCIES, EXPORT MARKET, INCOMES, MACROECONOMIC INSTABILITY, DEVELOPMENT ECONOMICS, CREDIT, MARKETS, EXPENDITURES, EXPORT VOLUMES, IMPORTS, GROWTH RATE, EXPORT RECEIPTS, EXPORT EARNINGS, PRICES, TRADE COSTS, TRADE VOLUME, TRADE PARTNERS, TRADE DIVERSIFICATION, PRODUCTION, ELASTICITY, VALUE OF EXPORTS, EXPORT PROMOTION AGENCIES, GDP PER CAPITA, EXPORT DEPENDENCE, MARKET CONCENTRATION, DEVELOPMENT POLICY, EXPORT REVENUE, TRADE SURPLUS, NATURAL RESOURCES, EXPORT, TRADE, PRODUCTS, MARKET, SUPPLY, TRADE PARTNER, PRICE CHANGES, TRADE VALUE, CURRENT ACCOUNT DEFICIT, FOREIGN CURRENCY, VOLATILITY, EXPORT PERFORMANCE, EXPORT DYNAMICS, INTERNATIONAL PRICES

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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!
0
Average
Average
Average
Green