Open Economies Work Better!

Open Economies Work Better!
Title Open Economies Work Better! PDF eBook
Author Francis Ng
Publisher World Bank Publications
Pages 44
Release 1996
Genre Africa, Sub-Saharan
ISBN

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Open Economies Work Better! Did Africa's Protectionist Policies Cause Its Marginalization in World Trade?

Open Economies Work Better! Did Africa's Protectionist Policies Cause Its Marginalization in World Trade?
Title Open Economies Work Better! Did Africa's Protectionist Policies Cause Its Marginalization in World Trade? PDF eBook
Author Francis Ng
Publisher
Pages
Release 1999
Genre
ISBN

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August 1996 Sub-Saharan Africa has declined in importance in world trade mainly because it has not remained competitive. External protection has not played a major role in this decline; indeed, OECD trade preferences gave Africa an advantage over many exporters. But Africa's own trade barriers are too high. Many studies show that liberal trade policies generally lead to superior growth, an important finding if Africa is to reverse its diminishing role in world trade. In the mid-1950s Sub-Saharan Africa accounted for 3.1 percent of global exports. By 1990 this share had fallen to 1.2 percent. The reasons for this decline are important for policymaking. If external protection in OECD markets was an important contributing factor, the solution to Africa's trade problems requires liberalizing industrial countries' trade barriers. But if Africa's marginalization resulted primarily from inappropriate domestic policies that reduced the region's ability to compete internationally, changes in Africa's own policies are crucial for a reversal of adverse trade trends. Ng and Yeats find that Africa's extensive loss of competitiveness played a key role in its decline in world trade. If Africa had merely retained its 1962-64 OECD market shares, its exports now would be 75 percent ($11 billion) higher. In addition, global demand for the region's major exports grew considerably more slowly than demand for most other goods. In short, Africa's problem was two-pronged: It experienced declining market shares for its major export products, which, in turn, were of declining relative importance in world trade. And it was unable to diversify its export base. As a result, it is now among the regions mostly highly dependent on relatively few export products and -- unlike all other regions -- this dependence has increased sharply over the past three decades. Empirical evidence developed by Ng and Yeats shows that external protection has not played a major role in this decline; indeed, OECD trade preferences gave Africa an advantage over many exporters. Trade restrictions and domestic policy interventions often create a bias against tradables, especially exports, that prevents the achievement of otherwise attainable growth rates. Import barriers in Africa are far higher than in developing countries with faster export growth, and appear to work against potential export products. If the region is to reverse its unfavorable export trends, it must adopt trade and structural adjustment policies that help make it competitive and help African exporters capitalize on foreign trade opportunities. This paper -- a product of the International Trade Division, International Economics Department -- is part of a larger effort in the department to identify barriers to developing countries' exports and assist in their removal.

Open Economies Work Better! Did Africa's Protectionist Policies Cause Its Marginalization in World Trade?

Open Economies Work Better! Did Africa's Protectionist Policies Cause Its Marginalization in World Trade?
Title Open Economies Work Better! Did Africa's Protectionist Policies Cause Its Marginalization in World Trade? PDF eBook
Author Francis Ng
Publisher
Pages 0
Release 2008
Genre
ISBN

Download Open Economies Work Better! Did Africa's Protectionist Policies Cause Its Marginalization in World Trade? Book in PDF, Epub and Kindle

Sub-Saharan Africa's declining importance in global trade is primarily due to its inability to remain competitive in international markets. If Africa merely retained its 1962-1964 shares for major products its exports would now be 75% ($11 billion) higher. External protection against Africa has not played an important role in this decline, in fact, OECD trade preferences made market access conditions for Africa more favorable than that for many other exporters. In contrast, sub-Saharan Africa's own trade barriers are considerably higher than those of most other developing countries, particularly those that launched sustained export-oriented industrialization drives. Since numerous studies show countries which pursue liberal trade policies generally achieve superior growth rates, these findings accent the importance of domestic policy reforms if Africa is to reverse its diminishing role in world trade. In short, the future of African economies will be determined by Africans themselves and not by outsiders.

Open Economies Work Better! Did Africa's Protectionist Policies Cause its Marginalization in World Trade?

Open Economies Work Better! Did Africa's Protectionist Policies Cause its Marginalization in World Trade?
Title Open Economies Work Better! Did Africa's Protectionist Policies Cause its Marginalization in World Trade? PDF eBook
Author Francis Ng
Publisher
Pages 44
Release 2016
Genre
ISBN

Download Open Economies Work Better! Did Africa's Protectionist Policies Cause its Marginalization in World Trade? Book in PDF, Epub and Kindle

Sub-Saharan Africa has de ...

Did External Barriers Cause the Marginalization of Sub-Saharan Africa in World Trade?

Did External Barriers Cause the Marginalization of Sub-Saharan Africa in World Trade?
Title Did External Barriers Cause the Marginalization of Sub-Saharan Africa in World Trade? PDF eBook
Author Alexander Yeats
Publisher
Pages
Release 1999
Genre
ISBN

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March 1996 Sub-Saharan African countries' policies contributed more to that region's 30-year decline in world trade than did OECD trade barriers, but policy options available to the OECD countries could improve the environment for African exports. Highest priority should be given to policies favoring African agricultural exports whose growth could greatly alleviate the extreme rural poverty in Africa. OECD trade barriers were not a significant factor in Sub-Saharan Africa's declining position in world trade between the mid-1950s and 1990. Far more detrimental were the African countries' own policies, including those affecting transport costs. It is essential that African countries adopt reforms aimed at achieving cost competitiveness. Anti-competitive cargo reservation policies in many African countries help inflate international transport costs, which eat up a disproportionate share of African countries' foreign exchange earnings. Deregulation of international shipping and the promotion of competitive shipping services, together with improvements in transport infrastructure, could significantly reduce freight costs. But policy options available to the OECD countries could also improve the external environment for, and competitive position of, African exports. Policies involving preferences should be viewed as a step toward general trade liberalization. Highest priority should be given to policies favoring agricultural exports. Among policy options the OECD countries should consider: * Regional arrangements such as the European Union and the North American Free Trade Agreement discriminate against African and other developing countries. Policy initiatives are needed to at least place them on an equal basis with OECD members in these arrangements -- especially for labor-intensive products. * African exports are concentrated in primary commodities. When further processing is suitable, OECD preferences should be extended to all stages of the processing chain. * Given the extreme rural poverty in Africa, measures are needed to reduce protection against African food exports. One option would be to extend (ceiling-free) generalized system of preferences for tariffied agricultural nontariff barriers. * Ceilings and quotas should be eliminated from industrial-country preference schemes to be made consistent with unrestricted intra-OECD preferences extended under free trade agreements. * OECD countries could also provide technical, finance, development, and policy analysis assistance aimed at alleviating Africa's international transport problems, especially for landlocked African countries. This paper -- a product of the International Trade Division, International Economics Department -- is part of a larger effort in the department to identify barriers to developing countries' exports and assist in their removal.

Did External Barriers Cause the Marginalization of Sub-Saharan Africa in World Trade?

Did External Barriers Cause the Marginalization of Sub-Saharan Africa in World Trade?
Title Did External Barriers Cause the Marginalization of Sub-Saharan Africa in World Trade? PDF eBook
Author Azita Amjadi
Publisher
Pages 0
Release 1996
Genre Africa, Sub-Saharan
ISBN 9780821338261

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Africa and the World Trading System

Africa and the World Trading System
Title Africa and the World Trading System PDF eBook
Author T. Ademola Oyejide
Publisher Africa World Press
Pages 404
Release 2005
Genre Business & Economics
ISBN 9781592211333

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This three-volume set presents the results of a research project initiated by the African Economic Research Consortium. The project intended to identify and examine the critical analytical and policy issues involved in Africa's economic links with the rest of the world, particularly in the context of the emerging global trading system. The project had two distinct but closely related component parts. The first was based on empirical, region-wide analysis and was designed to provide the framework for the menu of issues explored.