Explaining Africa's Export Performance–Taking a New Look

2016

A Master’s Thesis Submitted to the School of Graduate Studies Addis Ababa University In Partial Fulfillment of the Requirements for the Degree of Masters of Science in Economics (International Economics)

Economic Insights – Trends and Challenges, 2021

Developing countries in the factor-driven stage of development are usually bedevilled by domestic supply-side constraints which hinder translation of their comparative advantages to development. This study examines the domestic supply-side determinants to intra-Africa export performance in selected African countries. The study analysed 1994 to 2019 panel data of the biggest economies in each of the five African sub-regions, using pooled mean group (PMG) technique. The result from the study revealed capital formation, institutional quality, macroeconomic stability, technology adoption and infrastructure as significant long-run determinants of intra-Africa export performance while size of labour force was found to be insignificant long-run determinant of intra-Africa export share. All short-run coefficients of explanatory variables except one period lag of infrastructure and capital formation were insignificant. The coefficient of error correction term was negative and statistically s...

Journal of finance and economics, 2021

Despite its vast agricultural potential, Africa’s balance of trade for at least three decades is in deficit, remained a net importer of agricultural products. Hence, it is worthy studying determinants of export in East Africa. This study employed world and Africa development indicator data for 37 years of 9 East African countries to study determinants of export. Descriptive result showed that Exports in East Africa remained low because domestic demand is high from high population of having low productivity. FDI is low. The pooled mean group estimation result shows that Real GDP of exporting and some importing countries, trade openness, labor supply, domestic demand and gross capital formation are variables which significantly affect export in East Africa in the short run. Similarly, Gross capital formation, Final consumption, foreign direct investment, real GDP of exporting countries, real GDP of importing countries and trade openness are variables that affect significantly export o...

Chinese Business Review, 2018

The main objectives of this study are to identify and analyze variables that have an impact on the export performances of seven East African countries and suggest practical solutions to improve export performance in East Africa. Using data from the World Development Indicators database we conducted panel data analysis for the period of 1990-2014. Empirical results show that labor force, industrialization, foreign direct investment, and exchange rate have a positive impact on export value. On the other hand, inflation has a negative impact on export performance while GDP growth is the only variable that does not affect the export value of East African countries. Finally, we suggest some recommendations, including the need of replacing agricultural exports with industrial export, improving infrastructural facilities as well as the quality of human capital, and the need for policies for attracting international investors.

This paper used quantitative analysis with the help of pure descriptive statistics to examine the export performance of Newly Industrialized Countries; the lesson for African countries. The researcher selected Four NICs and Four African countries based on the data availability from the World Bank Development Index (2012). The NICs considered for the study are; China, India, Brazil and South Africa. While Ivory Coast, Gabon, Egypt and Kenya were selected in Africa based on data availability and geographical representation. The study reveals that the same peculiar hindrances factors that are obstacles to African countries’ export performance and economic success in the long run also applies to NICs but they were able to overcome it and drag themselves out of the poverty net. The necessary policy prescriptions were recommended by the researcher to the African countries to move near the end of “catch up " phase in order to achieve the impressive export performance that will lead to sustainable growth and development.

This paper used quantitative analysis with the help of pure descriptive statistics to examine the export performance of Newly Industrialized Countries; the lesson for African countries. The researcher selected Four NICs and Four African countries based on the data availability from the World Bank Development Index (2012). The NICs considered for the study are; China, India, Brazil and South Africa. While Ivory Coast, Gabon, Egypt and Kenya were selected in Africa based on data availability and geographical representation. The study reveals that the same peculiar hindrances factors that are obstacles to African countries' export performance and economic success in the long run also applies to NICs but they were able to overcome it and drag themselves out of the poverty net. The necessary policy prescriptions were recommended by the researcher to the African countries to move near the end of "catch up " phase in order to achieve the impressive export performance that will lead to sustainable growth and development.

World Development, 1990

Previous studies have found that export growth favorably affects the rate of economic growth in less developed countries (LDCs). This paper examines the extent to which this hypothesis holds true for African countries as a subgroup, especially since export contents and transmission mechanisms may differ between African and other LDCs. GDP growth of 28 African LDCs is analyzed using a pooled cross-sectional cum time-series estimation of 196&70 and 197680 average annual growth rates. Based upon the usual augmented production function specification that includes labor, capital formation, and exports, export growth is observed to exert a positive and significant impact on economic growth. While this export effect is somewhat smaller than that for non-African LDCs, the difference is not statistically significant.

2016

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Consilience: journal of sustainable development, 2011

This paper was guided by the hypothesis that it is not exports per se that matter, but different export components influence growth differently. We considered a sample of 35 sub-Sahara African countries based on availability of data on the key variables. Aggregate data were obtained from the most recent World Bank‟s World Development Indicators and International Monetary Fund‟s International Finance Statistics online facilities. Disaggregated data on exports and imports were obtained from the United Nation‟s Statistical Database under Standard International Trade Classification (SITC) Revision 4. The Generalized Methods of Moments estimator was employed during the analysis. We find that it is the growth in agricultural exports, and not manufactured exports, that is significantly associated with per capita income growth in our sample. These countries should adopt policies that increase agricultural exports in the medium term as they design strategies for increasing manufactured expor...