Determinants of International Trade in Sub-Saharan Africa: A Comparison with South East Asia

39 Pages Posted: 6 Oct 2011 Last revised: 10 Nov 2011

See all articles by Ambachew Mekonnen

Ambachew Mekonnen

Organization for Rahabilitation and Development in Amhara (ORDA)

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Date Written: October 4, 2011

Abstract

Underlying a model of decomposing a country’s trade performance into supply and demand conditions, our benchmarking analyses based on evidence from one-step system-GMM estimations using unbalanced panel data from 44 SSA and 11 SEA economies over the period 1995-2006 suggest that the trade performance of SSA is determined by internal supply, demand and import financing conditions. Export is explained by supply side factors but not by global demand where as import is driven by domestic demand but not by foreign supply access. However, SEA trade (exports and imports) is influenced by both domestic and international supply and demand side forces.

Keywords: Trade, Supply Capacity, Foreign Market, Panel Data, Benchmarking, SSA

JEL Classification: E22, F15, F43

Suggested Citation

Mekonnen, Ambachew, Determinants of International Trade in Sub-Saharan Africa: A Comparison with South East Asia (October 4, 2011). Available at SSRN: https://ssrn.com/abstract=1938579 or http://dx.doi.org/10.2139/ssrn.1938579

Ambachew Mekonnen (Contact Author)

Organization for Rahabilitation and Development in Amhara (ORDA) ( email )

Kebele 13,
ORDA Head Office,
Bahir Dar, Amhara Region, P.O.B 132,
Ethiopia

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