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41. Free Trade as an Anchor for Sustainable Development

Author:
Sundjo Fabien and Sunjo Tata
Publication Date:
12-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
Does trade enhance or jeopardize sustainable development? This brief answers this question by debunking the myth that protectionism is a driver of sustainable development. It then outlines the ways in which free trade can lead to sustainable development. This brief finds that free trade is a boon for GDP growth, value chains, and better productivity. It will equally lead countries to specialize and become more competitive. This brief pithily finds that free trade will anchor sustainable development if countries synchronize trade facilitation measures and lower non-tariff barriers such as indiscriminate checks at land borders.
Topic:
Development, International Trade and Finance, Sustainable Development Goals, Free Trade, and Sustainability
Political Geography:
Africa

42. Crime, inequality and subsidized housing: evidence from South Africa

Author:
Roxana Elena Manea, Patrizio Piraino, and Martina Viarengo
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
Centre for Trade and Economic Integration, The Graduate Institute (IHEID)
Abstract:
We study the relationship between housing inequality and crime in South Africa. We create a novel panel dataset combining information on crimes at the police station level with census data. We find that housing inequality explains a significant share of the variation in both property and violent crimes, net of spillover effects, time and district fixed effects. An increase of one standard deviation in housing inequality explains between 9 and 13 percent of crime increases. Additionally, we suggest that a prominent post-apartheid housing program for low-income South Africans helped to reduce inequality and violent crimes. Together, these findings suggest the important role that equality in housing conditions can play in the reduction of crime in an emerging economy context.
Topic:
Crime, Development, Inequality, and Housing
Political Geography:
Africa and South Africa

43. A Contextual Analysis of Green Micro, Small and Medium Enterprises/Local Green Enterprises in Uganda

Author:
Advocates Coalition for Development and Environment (ACODE)
Publication Date:
12-2021
Content Type:
Working Paper
Institution:
Advocates Coalition for Development and Environment (ACODE)
Abstract:
The Micro, Small and Medium Enterprises (MSMEs) dominate Uganda's economy. They play a pivotal role in production and supply chains, value addition, technology transfer, development and innovation. MSMEs, underpin the country's competitiveness, employment, income and wealth creation and if greened and well harnessed, they have a big potential to facilitate transitioning to an inclusive transformative growth trajectory.The report contributes to a better understanding of the sustainable financial architecture and how it affects the activities and priorities of LGEs in Uganda. It is hoped that the report will guide informed discussions at local and national levels and feed into the development of sustainable finance policy instruments, laws, support systems and standards that improve investment climate for LGEs and consequently promote the greening of MSMEs.
Topic:
Development, Economy, Green Technology, and Green Transition
Political Geography:
Uganda and Africa

44. Social Cohesion: A New Definition and a Proposal for its Measurement in Africa

Author:
Julia Leininger, Francesco Burchi, Charlotte Fiedler, Karina Mross, Daniel Nowack, Armin von Schiller, Christoph Sommer, Christoph Strupat, and Sebastian Ziaja
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Social cohesion is key for sustainable development. While social cohesion has suffered in many societies from the consequences of the Covid-19 pandemic, high levels of social cohesion have helped to overcome critical situations during the pandemic in other societies. As a consequence, protecting and strengthening social cohesion has become an increasingly central goal for most countries and the international community. Despite the strong interest in the topic, the questions of how to define social cohesion and make it an observable phenomenon through proper measurement are still contested, in both academia and policy circles. To date, no consistent, temporally and geographically spread-out data on the different elements of social cohesion exists that would allow for a global analysis of social cohesion. This rather fragmented picture of analytical approaches calls for a more universal definition and measurement of social cohesion. This paper aims to provide a narrow and measurable definition of social cohesion that travels across regions and countries. Conceptually, it proposes a definition of social cohesion that incorporates the core elements of existing and widely used definitions of social cohesion across disciplines (trust, identity, cooperation for the common good). Our contribution is to offer a definition of social cohesion that is broad enough to cover the essentials holding societies together while at the same time keeping it lean enough to analyse the causes and consequences of social cohesion, for instance the relationship between social cohesion and inequalities or political institutions. Methodologically, we propose an application of our concept to the African context. It is not only a first step towards a more global and inter-regional measurement of social cohesion, but also the basis for further knowledge-creation, the identification of patterns of social cohesion and the analysis of its causes and consequences. From a policy-oriented perspective, a more unified definition of the core elements of social cohesion and its measurement can inform policies that aim at protecting and fostering social cohesion. In development cooperation, it will help not only to build indicators for designing programme objectives and for evaluation and monitoring, but also to advance evidence-based theories of change.
Topic:
Development, Sustainability, Social Cohesion, and COVID-19
Political Geography:
Africa

45. Quantifying Investment Facilitation at Country Level: Introducing a New Index

Author:
Axel Berger, Ali Dadkhah, and Zoryana Olekseyuk
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
This article introduces a new and unique dataset for measuring the adoption of investment facilitation measures at country level. The Investment Facilitation Index (IFI) covers 117 individual investment facilitation measures, clustered in six policy areas, and maps their adoption for 86 countries. This article presents the conceptual and methodological background of the IFI and provides a first analysis of the level of adoption of investment facilitation measures across countries participating in the investment facilitation for development negotiations in the World Trade Organization (WTO). Our dataset reveals novel insights. Countries which have lower levels of adoption belong to the low-income and lower-middle-income country group and are often located in Africa, the Middle East and to some extent Latin America and the Caribbean. The strong correlation between FDI and the IFI score shows that countries with the lowest levels of FDI, and thus in need of policy tools to attract FDI, have the lowest levels of adoption when it comes to investment facilitation measures. Our dataset has direct relevance for current policy discussions on investment facilitation for development in the WTO but also for domestic-level policy-making. Furthermore, the IFI provides the basis for a future research agenda to assess the design and impact of a future WTO agreement.
Topic:
Development, Investment, and WTO
Political Geography:
Africa, Middle East, Latin America, and Caribbean

46. Employing Capital: Patient Capital and Labour Relations in Kenya’s Manufacturing Sector

Author:
Florence Dafe, Radha Upadhyaya, and Christoph Sommer
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Generating decent employment is key to the creation of a new social contract and social cohesion in Sub-Saharan Africa. The crucial question is, thus, how can more decent jobs be created? Much of the extant research has focused on the role of states and businesses in shaping employment relations. In this paper, we draw attention to a third type of actor that has been largely absent in the literature on the determinants of employment relations in developing countries: financial institutions. Based on data from 38 interviews of Kenyan manufacturing firms, financiers and labour representatives before and during the COVID-19 pandemic, we examine the relationship between the patience of capital and labour relations. In particular, the evidence presented in this paper suggests that access to more patient sources of capital may help to enhance the quantity and quality of jobs in African countries. We discuss three mechanisms through which this occurs. Our paper contributes to the growing body of research on patient capital (which largely focuses on developed countries) by extending it to the context of lower income African countries; it also speaks to the broader debates about how to enhance the contribution of finance capital to social cohesion.
Topic:
Development, Labor Issues, Manufacturing, Social Cohesion, COVID-19, and Capital
Political Geography:
Kenya and Africa

47. Governing climate mobility: Scoping study of two localities in Ghana

Author:
Joseph Teye, Francis Jarawura, Lily Salloum Lindegaard, Nauja Kleist, Marie Ladekjær Gravesen, Philip Mantey, and David Quaye
Publication Date:
09-2021
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Climate change is expected by many to produce new and/or intensified mobility patterns, including migration and displacement. However, only limited research exists on the relationship between climate change and human mobility, specifically on the implications of increasingly intense slow-onset climate change, such as weather variability and extremes. This DIIS Working Paper provides initial data and analysis on climate, mobility and governance in Ghana as an input to the Governing Climate Mobility Research Programme. In parts of Ghana, temperature increases have now topped 1.5 ºC, weather patterns and seasons are shifting, and all of this is occurring on the backdrop of other environmental and agrarian changes. This paper documents such changes through multi-decadal analyses of temperatures and rainfall as well as vegetation change. However, it also links these changes, and how they are experienced locally, to existing governance and mobility dynamics in the programme’s case study areas in the Upper West Region and Eastern Region. For instance, the paper indicates how governance interventions, including failures, have affected agrarian livelihoods as seen in the deteriorating irrigation infrastructure in the Upper West Region, and how existing mobility patterns are linked to resource access and rural livelihoods. This working paper is a scoping study and therefore provides a detailed introduction to such environmental, socio-economic, governance and mobility dynamics in the study areas, as well as identifying key dynamics and possible linkages for further study. It builds on a previous GCM working paper that explores the historical linkages between climate, mobility and governance in Ghana.
Topic:
Climate Change, Development, Environment, Migration, and Mobility
Political Geography:
Africa and Ghana

48. Why Do People Migrate Irregularly? Evidence From a Lab-in-the-Field Experiment in West Africa

Author:
Tijan L. Bah and Catia Batista
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
Irregular migration to Europe by sea, though risky, remains one of the most popular migration options for many sub-Saharan Africans. This study examines the determinants of irregular migration from West Africa to Europe. We implemented an incentivized lab-in-thefield experiment in rural Gambia, the country with the region’s highest rate of irregular migration to Europe. Male youths aged 15 to 25 were given hypothetical scenarios regarding the probability of dying en route to Europe and of gaining legal residence status after successful arrival. According to the data we collected, potential migrants overestimate both the risk of dying en route to Europe and the probability of obtaining legal residency status. In this context, our experimental results show that providing potential migrants with official numbers on the probability of getting a legal residence permit decreases their likelihood of migration by 2.88 percentage points (pp), while information on the death risk of migrating increases their likelihood of migration by 2.29 pp—although the official numbers should be regarded as a lower bound to actual mortality. Follow-up data collected one year after the experiment show that the migration decisions reported in the lab experiment correlate well with actual migration decisions and intentions. Overall, our study indicates that the migration decisions of potential migrants are likely to respond to relevant information.
Topic:
Development, Globalization, Migration, Internet, Economic Growth, Borders, and Violence
Political Geography:
Africa and Gambia

49. Launch of the 8th Local Government Councils Scorecard Report FY 2018/19: Summary Report of the Proceedings

Author:
Advocates Coalition for Development and Environment
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
Advocates Coalition for Development and Environment (ACODE)
Abstract:
This report presents the proceedings of the launch of the 8th Local Government Councils Scorecard report for the Financial Year 2018/2019 held at Hotel Africana in Kampala. The theme of the launch was: “The Next Big Steps: Consolidating Gains of Decentralisation and Repositioning the Local Government Sector in Uganda.” It was collaboratively convened by the Ministry of Local Government (MoLG), the Advocates Coalition for Development and Environment (ACODE) and the Uganda Local Governments Association (ULGA). The scorecard assessed the performance of elected district local government leaders in 35 districts strewn across the country, in the context of the decentralisation policy.
Topic:
Development, Budget, Local, and Decentralization
Political Geography:
Uganda and Africa

50. Creation of New Cities in Uganda: Social Economic and Political Implications

Author:
Jonas Mbabazi and Phoebe Atukunda
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Advocates Coalition for Development and Environment (ACODE)
Abstract:
This report analyses the socioeconomic implication of new cities in Uganda. The operationalization of new cities requires office structures, staff and other administrative resources that are vital for daily operations. These come with a hefty price tag that can only increase public administration expenditure. Besides the start-up funds, the administrative units require operational funds to enable them to implement their mandate as stipulated in the Local Government Act, 1997. Some of the responsibilities under their mandate include service delivery, governance and administration.
Topic:
Development, Governance, Urbanization, Urban, and Local
Political Geography:
Uganda and Africa

51. Functionality of Sector Working Groups in Uganda

Author:
Elijah Dickens Mushemeza and Emmanuel Keith Kisaame
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Advocates Coalition for Development and Environment (ACODE)
Abstract:
This paper assessed the functionality of the Sector Working Groups (SWGs) in Uganda for insights into the on-going policy developments in selected Sectors. The paper unravels the operational dynamics of the SWGs, their successes, and the challenges they have encountered. It then makes recommendations on how the functionality of SWGs could be improved.
Topic:
Development, Budget, and Domestic Policy
Political Geography:
Uganda and Africa

52. Assessing Capacities for Local Economic Development in Uganda

Author:
Susan Namirembe Kavuma, Assumpta Tibamwenda, Elijah Dickens Mushemeza, George Bogere, Lillian Tamale, Eugene Gerald Ssemakula, and Jonas Mbabazi
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Advocates Coalition for Development and Environment (ACODE)
Abstract:
This report presents the findings and discussions of Local Economic Development (LED) practices in nine districts of Northern Uganda that included: Adjumani, Amuru, Arua, Kitgum, Lira, Omoro, Oyam, and Yumbe. The analysis provides insights into implementation of LED policies, and the level of preparedness of the districts to implement the policy as a tool for economic transformation and development. LED was conceptualised as a process or development model where Local Governments, the private sector, and the community, are jointly and collectively engaged in identification, mobilization and management of resources at the local level. LED is therefore intended to create conducive environments for investment, increased household incomes, and higher revenues for Local Governments.
Topic:
Development, Economics, Governance, and Local
Political Geography:
Uganda and Africa

53. Agricultural input subsidy and farmers outcomes in Tanzania

Author:
Bethuel Kinyanjui Kinuthia
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper examines the impact of the government input subsidy—the National Agriculture Input Voucher—on farmers’ production and welfare in Tanzania as well as the factors that influence agricultural production in the country. The analysis is based on the Living Standards Measurement Study-Integrated Surveys on Agriculture for 2008–13. The study uses panel fixed effects and difference-in-difference and propensity score matching methods to examine the two objectives. The results show that the input subsidy programme resulted in an initial increase in maize and rice production but not in the long run and only in a few regions. In addition, there was a decrease in total production in the southern region and the programme had little effect on farmers’ welfare. The results show that this programme only partly met the expected outcomes in Tanzania due to mistargeting, inaccurate identification of households, and poor implementation.
Topic:
Agriculture, Development, Welfare, Farming, and Subsidies
Political Geography:
Africa and Tanzania

54. The praxis of combating VAW in Ethiopia: A political interpretation

Author:
Dereje Feyissa
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Violence against Women (VAW) is among the human rights violations that women face globally every day. The roots of VAW lie in historically unequal power relations between men and women and pervasive discrimination against women in both the public and private spheres. VAW is a global phenomenon that is not limited to certain cultures or countries. However, the form it takes is context-specific. In Ethiopia VAW is pervasive, occurring at three levels as identified by the UN: family; community; and the state. Despite policy pronouncements and the implementation of some practical measures, VAW is still prevalent in Ethiopia. This new Working Paper by Dereje Feyissa, adjunct associate professor, Addis Ababa University, offers a political interpretation to explain the gap between policy and practice on VAW in Ethiopia. Specifically, it argues that the gap between policy and practice lies in the type of regime in Ethiopia, which has undermined the political will and limited the space for gender activism. Historically, this has been evident ideologically (the Marxist frame of the ‘women question’ and the vanguardism connected with it), but also in respect to political legitimacy (ethnic federalism and the priority given to cultural rights), entrenched authoritarianism and the limited space available for gender activism by women’s right groups. The Working Paper is published as part of the international research programme GLOW – Global Norms and Violence Against Women in Ethiopia – financed by the Danish Ministry of Foreign Affairs.
Topic:
Development, Diplomacy, International Organization, Poverty, Women, Inequality, and Gender Based Violence
Political Geography:
Africa and Ethiopia

55. Renewable energy poses opportunities and challenges in Africa

Author:
Rasmus Hundsbæk Pedersen, Ole Winckler Andersen, and Henning Nøhr
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Development assistance plays an important role in the development of energy sectors in sub-Saharan African countries and it is increasingly being used to promote new renewable energy like solar and wind. The relationship between aid and domestic African priorities is however complex and outcomes are not always as donors had intended. By way of collecting experiences from a number of different approaches in different African country contexts a new DIIS Working Paper analyses recent trends in development assistance for new renewable energy. Overall, the paper demonstrates a shift to promoting market-led approaches that aim at mobilising private capital for power-sector investments. Whereas more capital has indeed been mobilised for new renewable energy projects the paper suggests that more support is needed if a transition to cleaner energy and universal access to energy services are to be achieved. Furthermore, the promotion of market-led approaches poses not only opportunities, but also a number of challenges to governments and donors. Clean energy and decarbonisation are often less of a priority among key decision-makers in African countries than they are for western donors. The paper argues that it is important to recognise these different interests and to be realistic about how to bridge them. Furthermore, despite improvements in recent years the capacity to plan, procure and integrate renewable energy in power systems remains a challenge in many countries. This points to the importance of ensuring a balance between support for market development and support for capacity-building of government entities. Needs are likely to differ from one country to another and change as renewable technologies develop. The constant adaption of approaches is therefore crucial.
Topic:
Climate Change, Development, Environment, and Renewable Energy
Political Geography:
Africa and Sub-Saharan Africa

56. Financing Public Private Partnerships (PPPs) in Botswana Through the Capital Market

Author:
Kelesego Mmolainyane
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
In her quest to further graduate to the high-income status, Botswana seeks to invest more in infrastructure development for both productive and social use. An efficient and effective infrastructure provision is fundamental to excellent public service delivery and access. Sadly, Botswana, like many other world economies, has a challenge of having an infrastructure financing gap. One of the innovative ways to fill this gap is through public private partnerships (PPPs) with the capital market that has excess liquidity. Infrastructure PPPs are complex and capital intensive projects that require project finance experts to advise parties involved regarding returns and risks associated with each project. Various project-financing models can be designed to suit project specifications and they cannot be over-generalised for all PPP projects. Nevertheless, given the tight fiscal space, Botswana now, more than ever, should consider issuing PPP bonds and applying user changes model to finance economic PPP infrastructure for sustainable and inclusive economic growth.
Topic:
Development, Economics, Infrastructure, Finance, Public Sector, Economic Development, and Private Sector
Political Geography:
Africa and Botswana

57. Key Drivers of Industrial Growth: A Case Study of Botswana’s Manufacturing Sector

Author:
Johanne Motsatsi and Goitseone Khanie
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The paper examines the key determinants of industrial growth in Botswana, using manufacturing sector value added as the proxy for industrial growth. It employs the Autoregressive Distributed Lag (ARDL) cointegration approach using annual time series data for the period 1983 to 2015. Empirical results show that industrial growth is driven by financial sector development, human capital development, trade openness and foreign direct investment. Specifically, domestic credit to the private sector as a percentage of GDP and secondary school enrolment ratio are found to be significantly related to manufacturing value added as a percentage of GDP both in the long run and short run. While the relationship is limited to long run for total trade to GDP, it only exits in the short run for FDI net inflows. The study therefore recommends that policy makers should design and ensure proper implementation of financial sector development strategies that can help ease access to credit for manufacturing enterprises in the country. There is also a need for a holistic approach in the design and implementation of innovation and human resource development policies in order to provide a conducive environment for skills acquisition, innovation and technological advancements in the manufacturing sector. Trade policies and export promotion strategies should heighten productivity and value addition in the manufacturing sector, so as to make local firms internationally competitive. Finally, with regards to FDI, the Government of Botswana should create an environment that could entice multinationals to invest in the local manufacturing industry. This, however, should be coupled with protectionist policies to avoid crowding out local manufacturers and exposing them to foreign competition.
Topic:
Development, Economics, Economic Growth, Manufacturing, Economic Development, and Industrialization
Political Geography:
Africa and Botswana

58. Whistleblowing in Botswana's Construction Industry : A Public and Private Sector Perspective

Author:
Marumo Omotoye
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The construction industry (CI) is considered one of the most corrupt both internationally and regionally. Therefore, this study examined the views and attitudes of professionals in Botswana’s CI towards the role whistleblowing (or protected disclosure) can play in curbing corruption in the sector. A convergent mixed methods approach was adopted. Semi-structured interviews were conducted with key stakeholders from the construction industry. Furthermore, a self-administered survey was utilised to collect quantitative data from 117 construction firms. Data revealed that there was little awareness of whistleblowing legislation. Fear of retaliation or punishment and job loss, and a lack of education on whistleblowing were identified as some of the most substantial barriers to effective whistleblowing in the industry. From a public policy perspective, it is recommended that an emphasis be placed on improving levels of education and awareness on whistleblowing in the construction sector. In addition, there should be consideration to amend the Whistleblowing Act 2016 to include construction industry regulators, the Public Procurement and Asset Disposal Board, and private media amongst the list of institutions authorised to receive reports of impropriety in order to extend the scope of legal protection to whistleblowers in the sector. Recommendations for further research are provided.
Topic:
Corruption, Development, Economics, Public Sector, Manufacturing, Economic Development, Private Sector, Industry, and Whistle Blowing
Political Geography:
Africa and Botswana

59. COVID-19 and Canada’s Development Assitance in Sub-Saharan Africa

Author:
Emily Gilfillan
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
Canadian Global Affairs Institute (CGAI)
Abstract:
COVID-19 has created unprecedented challenges for governments around the world. In March 2020, the World Health Organization (WHO) declared the global outbreak of COVID-19 a pandemic. In addition to a worldwide health crisis, the pandemic has had far-reaching socioeconomic impacts that have been severest for the most vulnerable people and have exacerbated existing inequalities. This presents wealthy countries like Canada with a challenge: addressing the health crisis and economic fallout at home, while simultaneously supporting a global COVID-19 response and continuing to tackle existing development priorities. This report explores the implications of COVID-19 for Canada’s development assistance efforts in Sub-Saharan Africa (SSA). Given that 27 of the 28 poorest countries in the world are located in SSA and half of Canada’s Official Development Assistance (ODA) budget is expected to go to countries in Africa by 2021-22, it is a priority region. To date, Canada has maintained ODA spending levels, while also providing additional funds in support of global efforts to address COVID-19. Evidence suggests that pre-pandemic priorities in the region, such as gender equality, health, and food security, have not been derailed. Rather, the impact of the pandemic has reinforced the importance of core development objectives such as achieving the United Nations (UN) Sustainable Development Goals (SDGs). In particular, Canada’s Feminist International Assistance Policy (FIAP) is fit for purpose to address the gendered impact of the pandemic. It is clear that the pandemic does not affect men and women equally. While the right policy tools are in place, building back better will require Canadian resolve and leadership to stay the course and ensure the most vulnerable are not left behind.
Topic:
Development, Gender Issues, Finance, COVID-19, and Health Crisis
Political Geography:
Africa, Canada, North America, and Sub-Saharan Africa

60. Assessing Asia: Sub-Saharan Africa Global Value Chain Linkages

Author:
Heiwai Tang, Douglas Zhihua Zeng, and Albert Zeufack
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
This paper studies the relationship between Asia’s economic engagements in Africa and individual African nations’ participation in global value chains (GVC) over the past two decades. We find that while overall exports from Africa to Asia are still highly concentrated in resource-intensive sectors, a few African countries have exploited the emerging opportunities to diversify export portfolios through exporting to Asia. Each African nation has a distinct main trade partner in Asia, in contrast to the common view that China has become the dominant trade partner of most African nations. Using a panel data set for 46 African countries over 16 years from 2000 and 2015, we find that exports to Asia are positively correlated with exports to the rest of the world, suggesting that in contrast to trade diversion, trade with Asia complements exports to other countries. Asian economic engagement in the continent is associated with countries’ exports “moving up the value chain”, as measured by the upstreamness index proposed by Antras et al. (2012). However, such process was accompanied by a reduction in the length of their production chains, implying that fewer stages and countries are now involved in the production of exported goods.
Topic:
Development, International Political Economy, Natural Resources, Partnerships, Exports, Trade, Global Value Chains, and Data
Political Geography:
Africa, Asia, and Global Focus