Download
1 / 9
90 likes | 172 Views
Regional trade preferences within Africa face obstacles due to concentrated non-oil exports and limited intra-African trade. Mismatch between exports and imports hinders rapid change, with little trade between East and West Africa. Prioritizing imports from African nations could impact global export competitiveness. Regional trade agreements may pose risks, presenting Africa with a lose-lose scenario based on findings from Yeats (1998), Fischer (2001, 2007).
E N D
Regional preference within Africa? • Africa's non-oil exports are concentrated in a few products, none of them important regional imports. • There is relatively little intra-African trade and the mismatch between African exports and imports cannot quickly change. • Moreover, intra-African trade is highly concentrated, geographically, with almost no trade between East and West Africa. • This finding makes less compelling the arguments that regional trade can help overcome problems of small domestic markets. • Giving preference to imports from other African countries risks making your own exports uncompetitive in the world market • In short, regional trade agreements seem to present Africa with a "lose-lose" situation. Yeats, 1998
Exchange rate regimes: the shift from the centre Fischer 2001
