Journal Issue
Back Matter

Back Matter

Céline Allard, Jorge Canales Kriljenko, Jesus Gonzalez-Garcia, Emmanouil Kitsios, Juan Trevino, and Wenjie Chen
Published Date:
March 2016
    • ShareShare
    Show Summary Details

      BaldwinR.2004. “Openness and Growth: What’s the Empirical Relationship?” In Challenges to Globalization: Analyzing the Economics, edited by Richard E.Baldwin and L. AlanWinters.National Bureau of Economic Research, University of Chicago Press, Chicago.

      BaldwinR.2011. “Trade and Industrialization after Globalization’s 2nd Unbundling: How Building and Joining a Supply Chain Are Different and Why It Matters.Working Paper No. 17716, National Bureau of Economic Research, Cambridge, Massachusetts.

      Brin, S., and L.Page.1998. “The Anatomy of a Large-Scale Hypertextual Web Search Engine.Proceedings of the 7th World-Wide Web Conference, Brisbane, Australia.

      De Benedictis, L., S.Nenci, G.Santoni, L.Tajoli, and C.Vicarelli.2014. “Network Analysis of World Trade Using the BACI-CEPII Dataset.Global Economy Journal14 (3–4): 287343.

      Dollar, D., and A.Kraay.2003. “Institutions, Trade and Growth.Journal of Monetary Economics50 (1): 13362.

      Head, K., and T.Mayer.2014. “Chapter 3—Gravity Equations: Workhorse, Toolkit, and Cookbook.” In Handbook of International Economics, edited by ElhananHelpman, KennethRogoff, and GitaGopinath.Elsevier4 (2014): 13195.

      Henn, C., C.Papageorgiou, and N.Spatafora.2013. “Export Quality in Developing Countries.Working Paper 13/108, International Monetary Fund, Washington.

      International Monetary Fund. 2011. “Implications of Asia’s Regional Supply Chain for Rebalancing Growth.” In Regional Economic Outlook: Asia and Pacific Department,Chapter III. Washington, April.

      International Monetary Fund. 2012. Regional Economic Outlook: Sub-Saharan Africa.Washington, October.

      International Monetary Fund. 2013. “Trade Interconnectedness—The World with Global Value Chains.Paper SM/13/248, Washington.

      International Monetary Fund. 2014a. Regional Economic Outlook: Asia and Pacific Department.Washington, May.

      International Monetary Fund. 2014b. “Baltic Cluster Report.Washington, May.

      International Monetary Fund. 2014c. Regional Economic Outlook: Sub-Saharan Africa.Washington,October.

      International Monetary Fund. 2015a. “Pan-African Banks–Opportunities and Challenges for Cross-Border Oversight.Unpublished, Washington.

      International Monetary Fund. 2015b. “Staff Report on Review of the Role of Trade in the Work of the Fund.”, Washington.

      International Monetary Fund. 2015c. “The Quest for Regional Integration in the East African Community.” Edited by P.Drummonds, S.Kal Wajid, and O.Williams.Washington, February.

      Javorcik, B. S., and M.Spatareanu.2008. “To Share or Not to Share: Does Local Participation Matter for Spillovers from Foreign Direct Investment?Journal of Development Economics85 (1): 194217.

      Lenzen, M., K.Kanemoto, D.Moran, and A.Geschke.2012. “Mapping the Structure of the World Economy.Environmental Science & Technology46 (15): 837481.

      Lenzen, M., K.Kanemoto, D.Moran, and A.Geschke.2013. “Building Eora: A Global Multi-Regional Input-Output Database at High Country and Sector Resolution.Economic Systems Research25:1.

      Maertens, M., L.Colen, and J.F.M.Swinnen.2011. “Globalisation and Poverty in Senegal: A Worst Case Scenario?European Review of Agricultural Economics38 (1): 3154.

      Mayer, T., and S.Zignago.2011. “Notes on CEPII’s Distances Measures: The GeoDist Database.Working Paper 2011–25, Centre d’Etudes Prospectives et d’Informations Internationales (CEPII), Paris.

      Moral-Benito, E.2012. “Determinants of Economic Growth: A Bayesian Panel Data Approach.Review of Economics and Statistics94 (2): 56679.

      Nordås, H. K., and R.Piermartini.2004. “Infrastructure and Trade.Staff Working Paper ERSD-2004-04, World Trade Organization, Geneva, August.

      Rodrik, D.2015. “Premature Deindustrialization.Working Paper 20935, National Bureau of Economic Research, Cambridge, Massachusetts.

      Sutton, J.2012. “Competing in Capabilities: The Globalization Process.Oxford University Press, Oxford.

      United Nations Conference on Trade and Development (UNCTAD). 2013. “World Investment Report 2013: Global Value Chains: Investment and Trade for Development.United Nations Publishing, New York and Geneva.

      United Nations Conference on Trade and Development (UNCTAD). 2014. “World Investment Report 2014: Investing in the SDGs: An Action Plan.United Nations Conference on Trade and Development. United Nations Publishing, New York and Geneva.

      World Trade Organization (WTO). 2014. World Trade Report 2014: Trade and Development: Recent Trends and the Role of the WTO.World Trade Organization, Geneva.

    This work was initiated in the context of the preparation of the IMF’s April 2015 Regional Economic Outlook for Sub-Saharan Africa. We would like to thank Domenico Fanizza, Anne-Marie Gulde, and Abebe Aemro Selassie for their useful comments, and Cleary Haines, George Rooney, and Fan Yang for outstanding research assistance.

    We measure trade openness with export- and import-to-GDP ratio to document actual trade flows in sub-Saharan Africa as it has been commonly used in the literature; see, for example, Baldwin 2004. Alternatively, one could also study tariffs and impediments to trade, which would be more suited to an analysis of the effects of trade liberalization. The analysis on the determinants of trade openness includes tariff and other nontariff barrier measures in the later sections.

    To address endogeneity issues, we either use lagged variables or we instrumentalize using a 3 Stage Least Squares (SLS) estimation methodology (see also Appendix 3.1).

    Common language dummies indicate whether the pair of trading partners shares a common official language or a language that is spoken by at least 9 percent of the population in both countries (Mayer and Zignago 2011).

    Cross-regional trading dummies are included, but not shown, in the specifications of columns 2 and 3.

    The rule of law and infrastructure quality indicators are taken from the Global Competitiveness Indicators database provided by the World Economic Forum. Tariffs are computed as the averages of effectively applied rates weighted by the product import shares corresponding to each partner country. Credit availability refers to domestic credit provided by the financial sector in percent of GDP. Both variables were obtained from the World Development Indicators database from the World Bank.

    Unrecorded flows across borders within sub-Saharan Africa are likely to be larger than elsewhere in the world, and the gaps are possibly overestimated as a consequence. Nonetheless, given the magnitude of the gaps estimated here, these would persist even with more comprehensive data coverage.

    For the numerical calculations, we follow the mathematical calculations as described in UNCTAD 2014, pp. 26–9.

    For instance, Maertens, Colen, and Swinnen (2011) find a positive effect of integration into agricultural GVCs on poverty reduction as it provides a source of formal and paid employment to largely informally employed agricultural workers who have low levels of education.

    It is worth stressing that integration in GVCs in itself is not a guarantee of higher income, as countries participating in portions of the GVCs with low value added run the risk of being permanently confined to these segments. However, scaling up in the GVC—that is, increasing the share of FVA in one country’s exports—is indeed associated with better chances to accelerate structural transformation. The insertion into GVCs can also enhance positive spillovers into the domestic economy through backward linkages, if domestic sectors are competitive enough to contribute into the value chain. For instance, in vertical backward linkages that integrate local suppliers into production processes of global value chain firms, these domestic suppliers can benefit from knowledge and technology spillovers (Javorcik and Spatareanu 2008).

      You are not logged in and do not have access to this content. Please login or, to subscribe to IMF eLibrary, please click here

      Other Resources Citing This Publication