Differential impact of trade liberalization and rural–urban income inequalities on poverty in African countries

Author(s):  
Kahsay Berhane
2019 ◽  
Vol 32 (1) ◽  
pp. 635-656 ◽  
Author(s):  
Adegbemi Onakoya ◽  
Babatunde Johnson ◽  
Grace Ogundajo

2013 ◽  
Vol 4 (3) ◽  
pp. 131-140 ◽  
Author(s):  
Tchouassi Tchouassi

This paper documents that trade liberalization and democracy contribute positively to economic development. A panel of 11 Central Africa countries with 176 observations from 1995 to 2010 was used to econometrically verify this assertion. Estimation using the general least square (GLS) with the overall R-square (R2 = 0.0325) shows that there is a relationship between the economic development captured here with Human development indicators (HDI), democracy, importations, exportations, inflation and regional integration. Inflation and exports negatively affect the well-being of the population. An increase in inflation rate causes a reduction in purchasing power. An increased in exports commodities tends to decrease the quantity of goods available for the country of origin. Imports have a positive effect on HDI probably because this variable tends to increase the quantity of goods available. Imports and democracy have a positive effect on the level of development among Central African countries. The paper’s findings are important to Central Africa policy makers towards creation and increasing trade within, between and with other democratic countries.


2010 ◽  
Vol 3 (3) ◽  
pp. 47 ◽  
Author(s):  
Wumi K. Olayiwola ◽  
Johansein Ladislaus Rutaihwa

The objective of this study is to investigate the effect of trade liberalization on employment performance of textile industry in Tanzania. The basic issue of concern is that the implementation of trade liberalization has differential impact on employment and wage in many African countries. In addressing this issue as well as achieving the objective, econometric models of employment and wage are estimated using co-integration method of analysis.  The analysis shows that effective rate of protection and export intensity have an insignificant positive impact on demand for labour, but import penetration has a significant negative impact on employment. Also, only import penetration has a significant negative impact on wage. The impact of import penetration is larger than that of export orientation, as the increase in import competition leads to a decline in labour demand. These findings point to the fact that to make trade liberalization to be effectual in Tanzania, the process of trade reform needs to be gradual and also need to be strengthened with appropriate institutional support.


2019 ◽  
Vol 19 (124) ◽  
pp. 1 ◽  
Author(s):  
Lisandro Abrego ◽  
Maria Alejandra Amado ◽  
Tunc Gursoy ◽  
Garth Nicholls ◽  
Hector Perez-Saiz

In March 2018, representatives of member countries of the African Union signed the African Continental Free Trade Area (AfCFTA) agreement. This agreement provides a framework for trade liberalization in goods and services and is expected to eventually cover all African countries. Using a multi-country, multi-sector general equilibrium model based on Costinot and Rodriguez-Clare (2014), we estimate the welfare effects of the AfCFTA for 45 countries in Africa. Three different model specifications—comprising both perfect competition and monopolistic competition—are used. Simulations include full elimination of import tariffs and partial but substantial reduction in non-tariff barriers (NTBs). Results reveal significant potential welfare gains from trade liberalization in Africa. As intra-regional import tariffs in the continent are already low, the bulk of these gains come from lowering NTBs. Overall gains for the continent are broadly similar under the three model specifications used, with considerable variation of potential welfare gains across countries in all model structures.


Author(s):  
Benjamin Azembila Asunka ◽  
Zhiqiang Ma ◽  
Mingxing Li ◽  
Oswin Aganda Anaba

This study set out to analyze the effect of innovation on firm performance in developing economies in the era of trade liberalization. The study uses data from the enterprise survey of the World Bank covering 19 Sub Saharan African countries surveyed between 2014 and 2016, with a total of 8,551 firms included. In order to effectively analyze the effect of innovation on firm performance, the CDM model is adopted to analyze R&D intensity, the effect of domestic R&D on innovation output, and the contribution of innovation to firm performance in the sub region. The study further tests for the effect of foreign technology and the import of products and services on the innovation process. Analysis is done using ordinary least squares. Findings suggest a positive and significant effect of foreign technology on domestic R&D, while imports have a negative effect on domestic R&D. Domestic R&D has positive effect on  both product and process innovations among firms in the sub region. Moreover, both product and process innovations have a positive and significant effect on firm performance in the sub region. Meanwhile, the export of innovations is not found to be significant in this study. We therefore recommend that governments in the region should give tax incentives to organizations that import products that are meant specifically for the production of new products and processes. Firms in the sub region should also focus on narrow market segments where they have specialist expertise in, so as to be competitive in the global market.


2018 ◽  
Vol 7 (1) ◽  
pp. 43-59
Author(s):  
Ade Ayu Fleury Amalina ◽  
Tanti Novianti ◽  
Alla Asmara

Trade liberalization generates higher commodity export opportunities between countries. The export opportunities to the African countries are evidenced by the high average growth of the total export values from Indonesia to Africa in 2011-2016, amounting to 5.886%. The aim of this research is to determine the potential importing African countries through the identification of export value and share, evaluate the performance and trade integration between Indonesia and the African countries through RCA, EPD and IIT methods. The results showed that South Africa with commodities like HS 71, 15, 40, 87 and 84 and Egypt with HS 15, 55, 40, 48 and 84, could be potential export destinations for Indonesia in 2011-2016. The Indonesian HS 71, 15 and 40 commodities in South Africa and Egypt i.e. HS 15, 55, 40, and 48, face tremendous competitivity. The potential Indonesian commodities in the South African market with HS codes of 15, 84, and 87 were considered as Falling Star while HS 71 and 40 were in retreating position. The HS 15 and 55 in the Egyptian market were in the position of Falling Star, with HS 40, 48, and 84 in the Retreat position. In South Africa, the HS commodities 71, 15, 40 and HS 87 were weakly integrated while the HS 50 had a strong integration. Keywords: African, RCA, EPD, IIT JEL classification: C23, F10, F13


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