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Open economies work better! did Africa's protectionist policies cause its marginalization in world trade?

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  • Ng, Francis
  • Yeats, Alexander
Abstract
In the mid-1950s sub-Saharan Africa accounted for 3.1 percent of global exports. By 1990 this share had fallen to 1.2 percent. The authors of this report find that Africa's extensive loss of competitiveness played a key role in its decline in world trade. If Africa had merely retained its 1962-64 OECD (Organization for Economic Cooperation and Development) market shares, its exports now would be 75 percent higher. Africa's problem was two-pronged: (1) it experienced declining market shares for its major export products, which, in turn, were of declining relative importance in world trade; and (2) it was unable to diversify its export base. Empirical evidence developed by the authors shows that external protection has not played a major role in this decline; in fact, OECD trade preferences gave Africa an advantage over many exporters. Trade restrictions and domestic policy interventions often create a bias against tradables, especially exports, that prevents the achievement of otherwise attainable growth rates. Import barriers in Africa are far higher than in developing countries with faster export growth, and appear to work against potential export products. If the region is to reverse its unfavorable export trends, it must adopt trade and structural adjustment policies that help make it competitive and help African exporters capitalize on foreign trade opportunities.
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  • Ng, Francis & Yeats, Alexander, 1997. "Open economies work better! did Africa's protectionist policies cause its marginalization in world trade?," World Development, Elsevier, vol. 25(6), pages 889-904, June.
    • Handle: RePEc:eee:wdevel:v:25:y:1997:i:6:p:889-904
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    Cited by:

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    2. Aksoy, M. Ataman & Ng, Francis, 2013. "Demand growth versus market share gains : decomposing world manufacturing import growth," Policy Research Working Paper Series 6375, The World Bank.
    3. AfDB AfDB, 2002. "Working Paper 60 - Trade Liberalization and Growth: Policy Options for African Countries in a Global Economy," Working Paper Series 2193, African Development Bank.
    4. Bianka Dettmer & Andreas Freytag & Peter Draper, 2013. "Check-in, departure and arrival times: Air cargo in Southern Africa?," Jena Economics Research Papers 2013-018, Friedrich-Schiller-University Jena.
    5. Cohen,Daniel & Kristensen,Nicolai & Verner,Dorte, 1999. "Will the Euro create a bonanza for Africa?," Policy Research Working Paper Series 2251, The World Bank.
    6. Bernard Hoekman & Francis Ng & Marcelo Olarreaga, 2002. "Eliminating Excessive Tariffs on Exports of Least Developed Countries," The World Bank Economic Review, World Bank, vol. 16(1), pages 1-21, June.
    7. Lawrence Edwards & Robert Z. Lawrence, 2014. "AGOA Rules: The Intended and Unintended Consequences of Special Fabric Provisions," NBER Chapters, in: African Successes, Volume III: Modernization and Development, pages 343-393, National Bureau of Economic Research, Inc.
    8. T. Ademola OYEJIDE, 2000. "Interests And Options Of Developing And Least-Developed Countries In A New Round Of Multilateral Trade Negotiations," G-24 Discussion Papers 2, United Nations Conference on Trade and Development.
    9. AfDB AfDB, 2002. "Working Paper 60 - Trade Liberalization and Growth: Policy Options for African Countries in a Global Economy," Working Paper Series 2273, African Development Bank.
    10. Behar, Alberto & Edwards, Lawrence, 2011. "How integrated is SADC ? trends in intra-regional and extra-regional trade flows and policy," Policy Research Working Paper Series 5625, The World Bank.
    11. Rune Jansen Hagen, 2002. "Marginalisation in the Context of Globalisation: Why Is Africa so Poor?," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 28, pages 147-179.
    12. Ng, Francis & Yeats, Alexander, 1999. "Good governance and trade policy : are they the keys to Africa's global integration and growth?," Policy Research Working Paper Series 2038, The World Bank.
    13. Edwards, Lawrence & Balchin, Neil, 2008. "Trade related business climate and manufacturing export performance in Africa: A firm-level analysis," MPRA Paper 32863, University Library of Munich, Germany.
    14. Maria Paula Fontoura & Nuno Crespo, 2015. "Trade performance of the less developed African countries," Journal of Developing Areas, Tennessee State University, College of Business, vol. 49(1), pages 223-241, January-M.
    15. Benno J. Ndulu, 2007. "Challenges of African Growth : Opportunities, Constraints, and Strategic Directions," World Bank Publications - Books, The World Bank Group, number 6656.
    16. C.L. McCarthy, 1998. "Problems and Prospects of African Economic Development," South African Journal of Economics, Economic Society of South Africa, vol. 66(4), pages 202-214, December.
    17. Diaz-Bonilla, Eugenio & Reca, Lucio, 2000. "Trade and agroindustrialization in developing countries: trends and policy impacts," Agricultural Economics, Blackwell, vol. 23(3), pages 219-229, September.
    18. Kempe Ronald Hope, 1998. "Development policy and economic performance in Botswana: lessons for the transition economies in Sub-Saharan Africa," Journal of International Development, John Wiley & Sons, Ltd., vol. 10(4), pages 539-554.
    19. Zhen Kun Wang & Winters, L. Alan, 1997. "Africa's role in multilateral trade negotiations," Policy Research Working Paper Series 1846, The World Bank.
    20. Aboagye, Anthony Q. & Gunjal, Kisan, 2000. "An analysis of short-run response of export and domestic agriculture in sub-Saharan Africa," Agricultural Economics, Blackwell, vol. 23(1), pages 41-53, June.
    21. Rivera, Sandra A. & Tsigas, Marinos E., 2005. "How does China’s growth affect India? An Economywide Analysis," Conference papers 331359, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    22. Bernhard G. Gunter & Britni Wilcher, 2020. "Three decades of globalisation: Which countries won, which lost?," The World Economy, Wiley Blackwell, vol. 43(4), pages 1076-1102, April.
    23. Olarreaga, Marcelo & Ng, Francis, 2001. "Tariff Peaks in the Quad and Least Developed Country Exports," CEPR Discussion Papers 2747, C.E.P.R. Discussion Papers.
    24. Andrew Mwaba, 2002. "Working Paper 60 - Trade Liberalization and Growth: Policy Options for African Countries in a Global Economy," Working Paper Series 194, African Development Bank.

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