Integration of African Countries in Regional and Global Value Chains: Static and Dynamic Patterns
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Date
2022-07
Authors
Mensah, Emmanuel B.
Biesebroeck, Johannes Van
Journal Title
Journal ISSN
Volume Title
Publisher
African Economic Research Consortium
Abstract
We study the geographic concentration of trade flows of African countries using
information on the global input-output structure from the Eora database. Most
countries show a similar concentration between close-by vs. long-distance trade in
their foreign input sourcing as in their export sales. However, changes over the last two
decades indicate that many countries increasingly focus their long-distance trade on
only one of these two dimensions. This trend is most pronounced in manufacturing
industries with stronger global value chains. In line with the learning-by-exporting
hypothesis, export success on distant markets is a leading predictor (Granger causes)
of regional export success. Only in light manufacturing do we find some evidence of
a reverse pattern, i.e., regional exports preceding global exports.
Description
Keywords
GVC; Upgrading; Granger causality