Introduction: Understanding Africa’s Regional Trade
Abstract
Africa has registered growth rates of more than 5% annually over the past decade (2004–2014), with a third of African countries averaging 6.5% growth per year (African Development Bank et al., 2014). This current growth pattern has brought Africa to a turning point, if not a tipping point, in its development trajectory. A more globalized world economy has brought increasing functional and spatial specialization, as well as growing interdependence, and vulnerability of national economies to external shocks. Meanwhile, a process of de-industrialization in the developed world has been paralleled by an increasing competitiveness of developing countries in manufacturing. The changing structure of the global economy requires Africa to integrate in order to survive. Translating economic gains into sustainable and shared growth requires Africa to connect its markets, deepen Regional Integration (RI) and enhance national competitiveness (World Economic Forum et al., 2013). Embedding RI into Africa’s development agenda, whether in the form of preferential trading area or economic and monetary union, will move African economies to the next stage of competitiveness and integration in the global economy as befits the continent’s rise.
Keywords
Gross Domestic Product Trade Policy Bilateral Trade Monetary Union Currency UnionPreview
Unable to display preview. Download preview PDF.
References
- African Development Bank [AfDB] (2014), OECD Development Centre and United Nations Development Programme, African Economic Outlook, Paris: OECD Publishing.Google Scholar
- Alesina, A. and Barro, R. J. (2002), ‘Currency Unions’, Quarterly Journal of Economics, vol. 117, no. 2, pp. 409–436.CrossRefGoogle Scholar
- Alesina, A., Barro, R. J. and Tenreyro, S. (2002), ‘Optimum Currency Areas’, National Bureau of Economic Research, Working Papers, no. 9072, NBER, Inc.Google Scholar
- Barro, R. J. and Lee, J.-W. (2002), ‘IMF Programs: Who Is Chosen and What Are the Effects?’ Working Paper, no. 8951, National Bureau of Economic Research.Google Scholar
- Bhagwati, J. (1988), Protectionism, Cambridge, MA: MIT Press.Google Scholar
- Burton, H. (1998), ‘Reconsideration of Import Substitution’, Journal of Economic Literature, vol. 36, pp. 306–936.Google Scholar
- Department for International Development [DfID] (2011), ‘Regional Integration and Trade in Sub-Saharan Africa’, Trade and Investment Analytical Papers, DfID: Department for Business Innovation and Skills.Google Scholar
- Dornbusch, R. (1992), ‘The Case for Trade Liberalization in Developing Countries’, Journal of Economic Perspectives, vol. 6, pp. 69–85.CrossRefGoogle Scholar
- Geda, A. (2002), ‘Debt Issues in Africa: Thinking beyond the HIPC Initiative to Solving Structural Problems’, Working Paper Series UNU-WIDER Research Paper, World Institute for Development Economic Research.Google Scholar
- Glick, R. and Rose, A. K. (2002), ‘Does a Currency Union Affect Trade?’ European Economic Review, vol. 46, pp. 1125–1151.CrossRefGoogle Scholar
- Kaluwa, B. M. and Reid, G. C. (1991), ‘Profitability and Price Flexibility in Manufacturing for a Developing Country’, The Journal ofIndustrial Economics, vol. 39, no. 6, pp. 689–700.CrossRefGoogle Scholar
- Kirkpatrick, C. (1987), ‘Trade Policy and Industrialization in LDCs’ in Norman, Gemmell (ed.), Surveys in Development Economics, Oxford: Blackwell, pp. 71–72.Google Scholar
- Lewis, J. P. and Kallab, V. (1986), Development Strategies Reconsidered. New Brunswick, NJ: Transaction.Google Scholar
- OECD/WTO (2013), Aid for Trade at a Glance 2013: Connecting to Value Chains, WTO/OECD Publishing.Google Scholar
- Ricardo, D. (1817), On the Principles of Political Economy and Taxation, London: John Murray, Albemarle-Street.Google Scholar
- Rodrik, D. (2007), ‘Normalizing Industrial Policy’, Harvard University, August. Available at: http://ksghome.harvard.edu/ Google Scholar
- Rodrik, D. (1992), ‘The Limits of Trade Policy Reform in Developing Countries’, Journal of Economic Perspectives, vol. 6, pp. 87–105.CrossRefGoogle Scholar
- Rose, A. K. (2000), ‘One Money, One Market: The Effect of Common Currencies on Trade’, Economic Policy, CEPR and CES and MSH, vol. 15, no. 30, pp. 7–46.CrossRefGoogle Scholar
- Sundaram, J. K., Schwank, O. and von Arnim, R. (2011), ‘Globalization and Development in Sub-Saharan Africa’, DESA Working Paper, no. 102, ST/ESA/2011/DWP/102, February.Google Scholar
- Tinnbergen, J. (1962), Shaping the World Economy; Suggestions for an International Economic Policy, New York: Twentieth Century Fund.Google Scholar
- United Nations Conference on Trade and Development [UNCTAD] (2001), Economic Development in Africa: Performance, Prospects and Policy Issues. UNCTAD/GDS/AFRICA/2, Geneva.Google Scholar
- United Nations Economic Commission for Africa [UNECA] (2013), Economic Development in Africa Report–Intra-African Trade: Unlocking Private Sector Dynamism, Addis-Ababa: UNECA.Google Scholar
- Vreeland, J. R. (2003), The IMF and Economic Development, New York: Cambridge University Press.CrossRefGoogle Scholar
- Wade, R. (1990), Governing the Market: Economic Theory and the Role of Government in East Asian Industrialization, Princeton, NJ: Princeton University Press.Google Scholar
- Warin, T., Wunnava, P. V., Tengia, O. and Wandschneider, K. (2009), ‘Southern African Economic Integration: Evidence from an Augmented Gravity Model’, IZA Discussion Paper, no. 4316, July.Google Scholar
- World Bank (2010), World Development Indicators, Washington: World Bank.Google Scholar
- World Bank (2013), World Development Indicators, Washington: World Bank.Google Scholar
- World Economic Forum, World Bank and AfDB (2013), The Africa Competitiveness Report, Geneva: World Economic Forum.Google Scholar