GLOBAL

                                                                                                                                                                                                                                             DEVELOPMENT STUDIES

                                                                            Copyright © 2015 International Development Options

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Volume Seven                                                                  Winter 2014-Spring 2015                                                              Numbers 3-4.

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      AFRICA IN THE GLOBAL ECONOMY: EXAMINING TRADE DIVERSIFICATION AND NEW PATTERNS OF

    TRADE IN SOME LARGE AFRICAN ECONOMIES

 

      Tsitsi Effie Mutambara

      Department of Economics and Economic History

      Rhodes University

      Grahamstown, Republic of South Africa

      t.e.mutambara@ru.ac.za

      Published Online: March 15, 2017

       ABSTRACT

 

The article investigates the extent of changes in trade patterns and diversification in selected African countries over the period 2001-2013. The trade intensity index, revealed trade barriers index, and the export concentration index were used. Examined over several years, each index gives insights into new trade patterns and diversification that emerge in each country. In some cases, the extent to which the countries trade intensively with some of their trading partners changed as they adopted new trading partners and diversified their trade. In some cases, the trade barriers indexes which serve as indicators of the possibility of trade barriers against a commodity from a particular country changed over the years in line with some of the emerging trading patterns. Since easier market access benefits both countries, this gives insights into which trade would provide more opportunities for trade benefits to accrue. Export diversification reduces risks and facilitates economic development. The export concentration indexes show a slow pace of trade diversification by Nigeria, while the patterns for South Africa and Kenya are more diversified.

 

 

IDO        ISSN: 1093-8281                 Copyright © 2017 International Development Options

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