Integration of African Countries in Regional and Global Value Chains: Static and Dynamic Patterns
Mensah, Emmanuel B.
Biesebroeck, Johannes Van
African Economic Research Consortium
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.
GVC; Upgrading; Granger causality