Journal of African Trade

Latest Articles

Research Article

Prospects and Challenges for Supply Chain Trade under the Africa Continental Free Trade Area†

Jaime de Melo, Anna Twum
In Press, Uncorrected Proof, Available Online: 25 January 2021
African countries are negotiating the African Continental Free Trade Area with the aim to spearhead global value chain (GVC) trade among African countries as a driver for robust economic growth. This paper evaluates the participation of sub-Saharan African Regional Economic Communities (RECs) in GVC-related...
Research Article

Exchange Rate Dynamics and Trade Balance in Selected African Countries

Mohammed Shuaibu, Abdulrasheed Isah
Volume 7, Issue 1-2, December 2020, Pages 69-83
African countries have over the years experienced persistent current account deficits. The role of asymmetries in explaining the response of trade balance to exchange rate movement has not received adequate attention as linear models dominate extant empirical literature. In this paper, we examined the...
Research Article

Mind the Measure: On the Effects of Antidumping Investigations in Egypt

Nada Hazem, Chahir Zaki
Volume 7, Issue 1-2, December 2020, Pages 1-14
This paper examines the impact of the antidumping measures initiated by the Government of Egypt on imports during the period 2001–2015. Our contribution is twofold. First, the paper distinguishes between the effect of antidumping measures on the value, the volume and the price of imports. Second, it...
Research Article

Rules of Origin across African Regional Trading Agreements: A Landscape with Measures to Address Challenges at Harmonization†

Julien Gourdon, Dzmitry Kniahin, Jaime de Melo, Mondher Mimouni
In Press, Uncorrected Proof, Available Online: 29 December 2020
To become operational, the African Continental Free Trade Area (AfCFTA) must harmonize Rules of Origin (ROO) across Africa’s Preferential Trade Agreements (PTAs) along two dimensions: regime-wide rules and product-specific rules. This paper describes and evaluates these ROO across the major multiple-membership...
Research Article

Export Diversification Effects of Aid for Trade in sub-Saharan Africa

Stein Masunda
Volume 7, Issue 1-2, December 2020, Pages 29-36
This paper uses panel data of 42 sub-Saharan Africa countries from 2005 to 2015 to examine the effect of aid for trade (AfT) on export diversification. The average Hirschman-Herfindahl index measure of 0.77 indicates that the export basket of sub-Saharan African countries is very narrow. This is further...
Research Article

Considerations for Rules of Origin under the African Continental Free Trade Area

Landry Signé, Payce Madden
In Press, Uncorrected Proof, Available Online: 11 December 2020
Rules of origin are used to determine a product’s eligibility for preferential tariffs under a free trade agreement and have major implications for the extent of trade under the agreement and the growth of regional value chains. Firms choose to comply with rules of origin when the benefits of trading...
Research Article

The Impact of Imports from China on African Textile Exports

Yong He
Volume 7, Issue 1-2, December 2020, Pages 60-68
This study uses Comtrade trade data covering 1990–2017, 14 textile subsectors, and 53 African countries with their main trade partners to evaluate Chinese trade impacts on African textile exports over three subperiods at the sector level. It finds that, although textile imports from China had a significant...
Research Article

Agricultural Imports, Agriculture Productivity and Economic Growth in Sub-Saharan Africa

Esther N. Mwangi, Fuzhong Chen, Daniel M. Njoroge
Volume 7, Issue 1-2, December 2020, Pages 15-28
This study investigates the causal links among agricultural imports, agriculture productivity, and economic growth in 40 sub-Saharan African countries over the period 1990–2015. Granger causality tests are applied to infer direction of causality, and the generalized two-stage least squares instrumental...
Research Article

Regional Integration and Growth Spillovers: Is Africa an Economic Space?

Abdoulaye Seck, Founty Alassane Fall, Khadidiatou Aidara
Volume 7, Issue 1-2, December 2020, Pages 37-44
Market integration is often associated with economic growth spillovers, to the extent that strengthened trade linkages would make economic growth in one country an opportunity for growth to its partners. This paper uses a spatial dynamic panel data approach to analyze the extent to which Africa and its...
Research Article

The Demand for Imports and Exports in Africa: A Survey

Michael Olabisi, W. Charles Sawyer
Volume 7, Issue 1-2, December 2020, Pages 45-59
To drive economic development, it is important for policy makers to have a good understanding of the linkages between imports, exports, and the rest of the economy. This is particularly true for Africa. The continent depends on exports of commodities to finance imports of manufactured goods for consumption...
Research Article

The Effects of Trade Facilitation on Trade Performance in Africa

Daniel Sakyi, Sylvanus Kwaku Afesorgbor
Volume 6, Issue 1-2, December 2019, Pages 1-15
Institutional trade barriers constitute substantial constraints for a number of exporters and importers. These barriers are multidimensional and they impede trade flows and trade performance of many developing countries, including African countries. In particular, the International Trade Centre through...
Research Article

Foreign Direct Investment and Export Competitiveness in Africa: Investigating the Channels

Gladys Gamariel, Seedwell Hove
Volume 6, Issue 1-2, December 2019, Pages 30-46
Foreign Direct Investment (FDI) into Africa has surged in recent years. At the same time, international trade has increased, exposing African countries to international competition. This raises the question of whether FDI plays a role in enhancing export competitiveness. This study investigates the impact...
Research Article

Trade Reforms and Integration of Cocoa Farmers into World Markets: Evidence from African and non-African Countries

Komi Tsowou, Samuel K. Gayi
Volume 6, Issue 1-2, December 2019, Pages 16-29
The paper analyses cocoa farmers’ integration into global markets taking into account trade reforms in five cocoa producing countries. The analysis investigates price transmission mechanisms from world to domestic cocoa markets in the context of trade liberalizing policy reforms. The empirical analysis...
Research Article

Trade and Industrialisation in Africa: SMEs, Manufacturing and Cluster Dynamics

Raphael Kaplinsky, Mike Morris
Volume 6, Issue 1-2, December 2019, Pages 47-59
Trade in manufacturing through global and regional value chains has played an especially prominent role in global economic growth in recent decades. However, Africa faces severe challenges in growing manufacturing activities in the face of China and Southeast Asia’s competitive dominance of global manufactured...
Research Article

The Impact of Regional Integration on Africa’s Manufacturing Exports

Rodgers Mukwaya
Volume 6, Issue 1-2, December 2019, Pages 81-87
This paper analyses the impact of Regional Trade Agreements (RTAs) on intraregional manufactured exports in Africa. Using data from 1990 to 2015 for 45 African countries, a structural gravity model was estimated using the Poisson pseudo maximum likelihood estimator that controlled for heteroscedasticity...
Research Article

How Do Trade Margins Respond to Exchange Rate? The Case of Egypt✩

Chahir Zaki, Alia Abdallah, May Sami
Volume 6, Issue 1-2, December 2019, Pages 60-80
This paper examines the effect of the exchange rate devaluation on the quantity and value of exports (intensive margin of trade), as well as the ability to export new products and/or venture into new export markets (extensive margin of trade). Using monthly firm-level and sector-level data for the period...
Research Article

The consequences of Brexit for Africa: The case of the East African Community☆

Andrew Mold
Volume 5, Issue 1-2, December 2018, Pages 1-17
How will Brexit impact on Africa? This paper looks at the available empirical evidence and carries out a Computable General Equilibrium simulation, focusing particularly on the prospects for the East African Community (EAC). The paper makes three main points. First, while the direct impacts through investment,...
Research Article

Trade dependence, liberalization, and exports diversification in developing countries☆

Patrick N. Osakwe, Amelia U. Santos-Paulino, Berna Dogan
Volume 5, Issue 1-2, December 2018, Pages 19-34
This paper explores the relationship between trade, trade liberalization, and exports diversification in developing and Sub-Saharan African (SSA) countries. The non-parametric analyses indicate that developing countries that are more open to trade (based on trade intensity) tend to have more diversified...
Research Article

Trade facilitation and social welfare in Africa☆

Daniel Sakyi, Isaac Bonuedi, Eric Evans Osei Opoku
Volume 5, Issue 1-2, December 2018, Pages 35-53
Improving social welfare in the developing world remains a top priority on the global development agenda, as policymakers and international development partners worldwide strive to meet the Sustainable Development Goals by 2030. Using data on 40 African countries over the period 2010–2015, this paper...
Research Article

Oil prices and African stock markets co-movement: A time and frequency analysis

Grakolet Arnold Zamereith Gourène, Pierre Mendy
Volume 5, Issue 1-2, December 2018, Pages 55-67
This paper examines the co-movement between OPEC (Organization of Petroleum Exporting Countries) oil prices and the six largest African stock markets. We used wavelet coherence to analyze the evolution of this relationship both in time and by frequency. Our results show that the co-movement between African...
Research Article

How well does observable trade data measure trade friction costs? Evidence from member countries within the Economic Community of West African States (ECOWAS)

Festus Ebo Turkson
Volume 5, Issue 1-2, December 2018, Pages 69-86
This paper is an empirical application of the micro-founded measure of trade costs by Head and Mayer (2004) and Novy (2013). The derived micro-founded measure, consistent with the Ricardian and heterogeneous firm’s models of trade, captures all trade costs components that hitherto have been impossible...
Research Article

Export market destination and performance: Firm-level evidence from Sub-Saharan Africa☆

Ousmanou Njikam
Volume 4, Issue 1-2, December 2017, Pages 1-19
This paper uses a novel manufacturing firm-level survey data in 19 sub-Saharan African (SSA) countries to explore the linkages among a number of export-market destinations (e.g., China, India, other Asia, EU, US, MENA, SSA excluding South Africa, and South Africa) and performance. The paper also examines...
Research Article

Foreign direct investment, productivity and the technology gap in African economies

Christopher Malikane, Prosper Chitambara
Volume 4, Issue 1-2, December 2017, Pages 61-74
This paper investigates the impact of foreign direct investment on total factor productivity conditional on relative backwardness in a panel of 45 African countries over the period 1980–2012. We use two measures of relative backwardness, namely: the distance from technological frontier and the income...
Research Article

Effect of exchange rate volatility on trade in Sub-Saharan Africa☆

Bernardin Senadza, Desmond Delali Diaba
Volume 4, Issue 1-2, December 2017, Pages 20-36
The volatile nature of exchange rates with the advent of floating regimes has received much attention in economic research. The volatility is generally perceived as negatively affecting international trade. While theoretical predictions and empirical outcomes appear mixed, the balance seems to tilt in...
Research Article

Aid for trade and Africa’s trade performance: Evidence from bilateral trade flows with China and OECD countries☆

Adugna Lemi
Volume 4, Issue 1-2, December 2017, Pages 37-60
The optimism surrounding aid for trade (AfT) led scholars and practitioners to probe its link with trade performance of aid-recipient countries in Africa. In the absence of formal evaluation guidelines, most previous studies, using aggregate data, have looked into the impacts of AfT on exports and imports...