The Role of Trade Policies in Building Regional Value Chains – Some Preliminary Evidence From Africa

Slany, Anja

doi:10.1111/saje.12214

Cited by 29 publications

(29 citation statements)

References 46 publications

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“…At the global level, statistics show that between 1991 and 2012, Africa adds value to only 14% of its exports, compared to 27% for emerging Asian countries and 31% for developed countries (IMF, 2015; Mouanda‐Mouanda, 2019; World Bank et al, 2017). At the regional level, intra‐African trade in value‐added is low (9%), compared to 45% in Asia and 18% in Latin America (Slany, 2019).…”

Section: Introductionmentioning

confidence: 99%

Does trade in services improve African participation in global value chains?

Efogo

2020

African Development Review

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This research documents facts and offers an empirical appraisal of the contribution of trade in services for African participation in global value chains. It adopts a comparative approach among flows, service categories and positions in a global value chain, using data for a panel of 36 sub-Saharan African countries from 2000 to 2017. The empirical analysis, using generalized method of moments in system, leads to three main results on the trade in services and global value chain nexus in Africa. First, the relationship is linear and positive. Secondly, exportations of services have a lower effect than importations of services, whatever the position in a global value chain. Thirdly, some services have a positive outcome on both backward and forward participation in global value chains, while others have a one-sided effect. Those results give African countries tools to set a comprehensive and rationalized strategy to deepen and upgrade their participation in global value chains using trade in services.

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Section: Introductionmentioning

confidence: 99%

Does trade in services improve African participation in global value chains?

Efogo

2020

African Development Review

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“…Southern Africa was also found to be the most integrated region. There are notable differences in the focus and approach adopted by Slany (2017) and this current paper. First, the former uses foreign value added flows as the dependent variable and uses this indicator as a measure of backward participation of a country in RVCs.…”

Section: Review Of Empirical Studiesmentioning

confidence: 94%

“…Fourth, the former is silent on the need to control for the role of regional trade agreements as this play crucial roles on international value chains -be it regional or global. The fifth difference is in the technique adopted, as bilateral trade flows are usually characterized by the preponderance of zeros -this however applies to this current study and not Slany (2017) because of the indicator used by the latter as the dependent variable. Sixth, following from the nature of the dependent variable used by Slany (2017) -foreign value added in exports, which has both an import and export side -tariffs faced and charged are both included in the model.…”

Section: Review Of Empirical Studiesmentioning

confidence: 99%

Does intermediate tariff bode well for trade integration in ECOWAS?

Obasaju¹,

Olayiwola²,

Okodua³

et al. 2018

Journal of International Studies

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This paper analyses the impact of intermediate tariffs on intraregional intermediate exports within the Economic Community of West African States (ECOWAS) from 2000 to 2015. This is in order to investigate whether or not the levels of intermediate tariffs bode well for trade integration in ECOWAS. Using the Heckman Two-step technique, the empirical estimates reveal that the similarities in GDP and the presence of the West African Economic and Monetary Union (WAEMU), among others, are highly significant determinants of intraregional intermediate exports in ECOWAS. Contrarily, the quality of institution and the levels of intermediate tariffs are not important contributors to intraregional exports of intermediates. As the continent prepares towards the implementation of the African Continental Free Trade Area and considers regional value chains quintessential to development, policy makers should be informed of the unsupportive levels of intermediate tariffs in ECOWAS-a regional economic community that accounts for about thirty percent of the African population. Trade policies targeted at lowering intermediate tariffs within ECOWAS are called for.

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“…Second, regional and global trade regimes can significantly influence lead firms' geographies of sourcing (Curran et al, 2019). Using intra-regional trade in value-added as an indicator of participation in RVCs, Slany (2019) finds that trade liberalization with a reduction of import tariffs on capital goods favoured countries' participation in RVCs across SSA. In the apparel sector, multilateral trade agreements granting preferential access to the EU and the US markets have been crucial in developing apparel GVCs across Africa, Asia, and South America (Bair, 2017;Pickles et.…”

Section: Public Governancementioning

confidence: 99%

Understanding regional value chains through the interaction of public and private governance: Insights from Southern Africa’s apparel sector

2020

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Regional value chains (RVCs) and South–South trade are increasingly considered key features of 21st-century globalisation. This article investigates how RVCs are shaped by the interaction of private and public governance. It evaluates how this interaction unfolded in Southern Africa’s apparel RVCs, exploring trade, investment and labour regimes across three levels of analysis: national, regional, and global. The paper draws on trade data, secondary literature, and interviews with suppliers and institutions in Eswatini and Lesotho (the largest exporters to the region), and lead firms in South Africa (the largest regional importer). The findings underline the critical role of public governance in shaping retailers’ and suppliers’ participation in RVCs through: (i) regional ‘trade regimes’ protecting regional exporters from global competitors, and recent shifts in global trade regimes; (ii) national and regional ‘investment regimes’ facilitating investment flows from South Africa to Lesotho and Eswatini, and the more recent shift of US-oriented suppliers towards regional markets; and (iii) ‘labour regimes’, including lower wages, less comprehensive labour legislation and weaker trade unions in Lesotho and Eswatini compared to South Africa. The article concludes by considering the policy implications of the interaction of private and public governance for existing and future RVCs in Sub-Saharan Africa.

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The Role of Trade Policies in Building Regional Value Chains – Some Preliminary Evidence From Africa

Cited by 29 publications

References 46 publications

Does trade in services improve African participation in global value chains?

Does trade in services improve African participation in global value chains?

Does intermediate tariff bode well for trade integration in ECOWAS?

Understanding regional value chains through the interaction of public and private governance: Insights from Southern Africa’s apparel sector

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