Skip to main content Accessibility help

We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.

Close cookie message
×
Hostname: page-component-745bb68f8f-5r2nc Total loading time: 0 Render date: 2025-02-05T23:07:48.409Z Has data issue: false hasContentIssue false

13 - African Trade Integration and International Production Networks

from Part II - Africa’s Participation in the Rules-Based Multilateral Trading System

Published online by Cambridge University Press:  27 October 2016

By
Bernard M. Hoekman
Edited by
Patrick Low ,
Chiedu Osakwe  and
Maika Oshikawa
Patrick Low
Affiliation:
The University of Hong Kong
Chiedu Osakwe
Affiliation:
World Trade Organization, Geneva
Maika Oshikawa
Affiliation:
World Trade Organization, Geneva
Get access

Summary

Abstract

African trade is heavily concentrated in agricultural and natural resource-based commodities, sectors that are highly embedded in international value chains. There has been significant trade dynamism in recent years, driven by greater participation by African firms and communities in value chains, especially in products like fresh produce and flowers. Much of this trade and production is for end markets in Europe, but there is also increasing trade of this type within Africa in some manufacturing sectors as well as within services such as tourism. Intra-regional trade remains well below potential, however, and the challenge to diversify trade and increase the value-added share of African trade continues to confront most African economies. There are improving prospects for this as a result of intra-African policy changes, ranging from a greater focus on trade facilitation to the ambition of creating a continental free trade area. A steep increase in supply chain trade in Africa is possible in coming decades if efforts continue to put in place a supporting policy environment. This must centre on substantially lowering trade costs for African firms by implementing trade facilitation measures, especially for intra-regional trade flows, and improving the productivity of transport, logistics and related services that determine the feasibility of efficiently operating regional value chains.

Type
Chapter
Information
African Perspectives on Trade and the WTO
Domestic Reforms, Structural Transformation and Global Economic Integration
 , pp. 269 - 294
Publisher: Cambridge University Press
Print publication year: 2016

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

ACET (African Center for Economic Transformation) (2014), African Transformation Report 2014: Growth with Depth, Accra: ACET.Google Scholar
Afesorgbor, S. (2015), ‘Revisiting the Effectiveness of African Economic Integration: A Meta-analytic Review and Comparative Estimation Methods’, at: https://www.researchgate.net/publication/279868086_Revisiting_the_Effectiveness_of_African_Economic_Integration_A_Meta-analytic_Review_and_Comparative_Estimation_Methods.Google Scholar
African Development Bank (2013), At the Center of Africa’s Transformation: Strategy for 2013–2022, Tunis: AfDB.Google Scholar
Arvis, J. F., Duval, Y., Shepherd, B., and Utoktham, C. (2015), ‘Trade Costs in the Developing World: 1995–2010’, World Trade Review, doi: http://dx.doi.org/10.1017/S147474561500052X.CrossRefGoogle Scholar
Arvis, J., Raballand, G. and Marteau, J. (2010), The Cost of Being Landlocked: Logistics Costs and Supply Chain Reliability, Washington, DC: World Bank.CrossRefGoogle Scholar
Bamber, P., Fernandez-Stark, K., Gereffi, G. and Guinn, A. (2013), ‘Connecting Local Producers in Developing Countries to Regional and Global Value Chains’, Paris: OECD, Trade Policy Paper 160.Google Scholar
Banga, R., Kumar, D. and Cobbina, P. (2015), ‘Trade-led Regional Value Chains in Sub-Saharan Africa: Case Study on the Leather Sector’, Commonwealth Trade Policy Discussion Papers 2015/02.Google Scholar
Beverelli, C., Neumueller, S. and Teh, R. (2014), ‘A New Look at the Extensive Trade Margin Effects of Trade Facilitation’, Geneva: WTO, Staff Working Paper ERSD-2014–16.Google Scholar
Beverelli, C., Fiorini, M., and Hoekman, B. (2015), ‘Services Trade Restrictiveness and Manufacturing Productivity: The Role of Institutions’, EUI RSCAS Working Paper 2015/63.CrossRefGoogle Scholar
Bhattacharya, D. and Moazzem, K. (2013), ‘LDCs in the Global Value Chain’, Dhaka: Center for Policy Dialogue, CPD Working Paper 104.Google Scholar
Borchert, I., Gootiiz, B., Grover, A. and Mattoo, A. (2015), ‘Services Trade Protection and Economic Isolation’, The World Economy, doi: 10.1111/twec.12327.CrossRefGoogle Scholar
Breinlich, H., Soderbery, A. and Wright, G. (2014), ‘From Selling Goods to Selling Services: Firm Responses to Trade Liberalization’, CEPR Discussion Paper 10116.Google Scholar
Cadot, O., Carrère, C. and Strauss-Kahn, V. (2011), ‘Export Diversification: What’s Behind the Hump?’, Review of Economic and Statistics, 93(2): 590–605.CrossRefGoogle Scholar
Cadot, O., Iacovone, L., Pierola, M. and Rauch, F. (2013), ‘Success and Failure of African Exporters’, Journal of Development Economics, 101(C): 284–96.CrossRefGoogle Scholar
Christ, N. and Ferrantino, M. (2011), ‘Land Transport for Exports: The Effects of Cost, Time, and Uncertainty in Sub-Saharan Africa’, World Development, 39(10): 1749–59.CrossRefGoogle Scholar
Dennis, A. and Shepherd, B. (2011), ‘Trade Facilitation and Export Diversification’, The World Economy, 34(1): 101–122.CrossRefGoogle Scholar
Djankov, S., Freund, C. and Pham, C. (2010), ‘Trading on Time’, The Review of Economics and Statistics, 92(1): 166–73.CrossRefGoogle Scholar
Feenstra, R. and Ma, H. (2014), ‘Trade Facilitation and the Extensive Margin of Exports’, Japanese Economic Review, 65, 158–77.CrossRefGoogle Scholar
Finger, M (2016), ‘Rising Africa in World Trade’, this volume.Google Scholar
Francois, J. and Hoekman, B. (2010), ‘Services Trade and Policy’, Journal of Economic Literature, 48(3): 642–92.CrossRefGoogle Scholar
Freund, C. and Rocha, N. (2011), ‘What Constrains Africa’s exports?’ World Bank Economic Review, 25(3): 361–86.CrossRefGoogle Scholar
Goger, A., Hull, A., Barrientos, S., Gereffi, G. and Godfrey, S. (2014), ‘Capturing the Gains in Africa: Making the Most of Global Value Chain Participation’, Duke University, at: http://www.cggc.duke.edu/pdfs/Duke_CGGC_2014_Capturing_the_Gains_in_Africa.pdfGoogle Scholar
Hoekman, B. and Nicita, A. (2011), ‘Trade Policy, Trade Costs and Developing Country Trade’, World Development, 39(12): 2069–79.CrossRefGoogle Scholar
Hoekman, B. and Shepherd, B. (2015a), ‘Who Profits from Trade Facilitation Initiatives? Implications for African Countries’, Journal of African Trade, 2: 51–70.CrossRefGoogle Scholar
Hoekman, B. and Shepherd, B. (2015b), ‘Services Productivity, Trade Policy and Manufacturing Exports’, The World Economy, doi: 10.1111/twec.12333.CrossRefGoogle Scholar
Hummels, D. and Schaur, G. (2013), ‘Time as a Trade Barrier’, American Economic Review, 103(7): 2935–59.CrossRefGoogle Scholar
ITC (2013), The Participation of LDCs in Value Chains: Current Trends and Future Prospects, Geneva: International Trade Centre.Google Scholar
Karingi, S. (2016), ‘Preferential Trade Agreements in Africa: Lessons from the Tripartite FTA and the Continental FTA’, this volume.CrossRefGoogle Scholar
Keane, J., Cali, M. and Kennan, J. (2010), ‘Impediments to Intra-Regional Trade in Sub-Saharan Africa’, at: http://www.odi.org/sites/odi.org.uk/files/odi-assets/publications-opinion-files/7482.pdfGoogle Scholar
Lodefalk, M. (2014), ‘The Role of Services for Manufacturing Firm Exports’, Review of World Economics, 150(1), 59–82.CrossRefGoogle Scholar
Marti, L., Puertas, R., and Garcia, L. (2014), ‘Relevance of Trade Facilitation in Emerging Countries’ Exports’, The Journal of International Trade & Economic Development, 23L: 202–22.Google Scholar
Moïsé, E., and Sorescu, S. (2013), ‘Trade Facilitation Indicators: The Potential Impact of Trade Facilitation on Developing Countries’ Trade’, Paris: OECD, Trade Policy Paper 144.Google Scholar
Morris, M. and Fessehaie, J. (2015), ‘The Industrialization Challenge for Africa: Towards a Commodities Based Industrialization Path’, Journal of African Trade, 1(1): 25–36.CrossRefGoogle Scholar
Nicita, A., Shirotori, M. and Klok, B. (2013), ‘Survival Analysis of Exports of LDCs’, Geneva: UNCTAD, Policy Issues in International Trade and Commodities Study Series No. 54.Google Scholar
Pesce, O., Karingi, S. and Gebretensaye, I. (2015), ‘Trade Growth Prospects: An African Perspective’, in Hoekman, B. (ed.), The Global Trade Slowdown: A New Normal?, London: CEPR.Google Scholar
Porto, G., Chauvin, N. and Olarreaga, M. (2011), Supply Chains in Export Agriculture, Competition and Poverty in Sub-Saharan Africa, London: World Bank and CEPR.Google Scholar
Saslavsky, D. and Shepherd, B. (2014), ‘Facilitating International Production Networks: The Role of Trade Logistics’, The Journal of International Trade & Economic Development, 23(7): 979–99.CrossRefGoogle Scholar
Sexton, R., Sheldon, I., McCorriston, S. and Wang, H. (2007), ‘Agricultural Trade Liberalisation and Economic Development: The Role of Downstream Market Power’, Agricultural Economics 36: 253–70.CrossRefGoogle Scholar
Srinivasan, M, Stank, T., Dornier, P. and Petersen, K. (2014), Global Supply Chains: Evaluating Regions on an EPIC Framework, New York: McGraw-Hill.Google Scholar
Staritz, C. and Mayer, F. (2014), ‘Sector Case Study: Apparel’, in Winkler, D. and Farole, T. (eds.), Making Foreign Direct Investment Work for Sub-Saharan Africa: Local Spillovers and Competitiveness in Global Value Chains, Washington, DC: World Bank.Google Scholar
Swinnen, J. (2014), ‘Global Agricultural Value Chains, Standards and Development’, EUI Robert Schuman Centre for Advanced Studies Working Paper 2014/30.CrossRefGoogle Scholar
Taglioni, D. and Winkler, D. (2014). ‘Making Global Value Chains Work for Development’, in Economic Premise No. 143, Washington, DC: World Bank, at: https://openknowledge.worldbank.org/bitstream/handle/10986/18421/880530BRI0EP140d0VC0knowledge0notes.pdf?sequence=1Google Scholar
UNCTAD (2013), Economic Development in Africa Report 2013 – Intra-African Trade: Unlocking Private Sector Dynamism. Geneva: UNCTAD.Google Scholar
UNECA (2013), Making the Most of Africa’s Commodities: Industrializing for Growth, Jobs and Economic Transformation. Addis Ababa: Economic Commission for Africa.Google Scholar
World Bank (2012), De-fragmenting Africa: Deepening Regional Trade Integration in Goods and Services, Washington, DC: World Bank.Google Scholar
World Bank (2013), Growing Africa Unlocking the Potential of Agribusiness. Washington, DC: World Bank.Google Scholar
World Bank (2014), Connecting to Compete, 2014: Trade Logistics in the Global Economy. Washington, DC: World Bank.Google Scholar
World Bank (2016), ‘Factory Southern Africa? SACU in Global Value Chains’, at: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2016/01/21/090224b0840e51c5/1_0/Rendered/PDF/Factory0Southe0ins000summary0report.pdf.Google Scholar
World Trade Organization (2013), ‘Agreement on Trade Facilitation’, Geneva: WTO.Google Scholar
World Trade Organization (2015), International Trade Statistics 2015. Geneva: WTO.Google Scholar
Zaki, C. (2015), ‘How Does Trade Facilitation Affect International Trade?’, European Journal of Development Research, 27(1): 156–85.CrossRefGoogle Scholar

Save book to Kindle

To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×