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on International Trade |
| By: | Gnimassou, Blaise |
| Abstract: | Contrary to popular belief, many Africans who migrate stays in Africa. In a context of low trade openness between African countries and high differences in the prices of goods and factors, intra-African immigration could theoretically play an important role. This paper aims to study the impact of intra-African immigration on labour productivity in Africa, as well as its macroeconomic and sectoral components. Empirically, I rely on a panel of 187 countries, including 53 African countries, over the period 19902019, and a gravity-based 2SLS approach to deal with endogeneity. The results show that intra-African immigration has a positive, significant, and robust impact on labour productivity in Africa. This impact is greater than the effect of immigration in a global sample, and essentially passes through the improvement in total factor productivity and capital efficiency. While immigration tends to deteriorate capital productivity in the world sample, intra-African immigration improves capital productivity in Africa. Furthermore, the results reveal that the service sector is the one that benefits from the positive effect of intra-African immigration in Africa. |
| Date: | 2024–04–11 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:24a28f5a-7524-4b33-96b5-918ed203dd92 |
| By: | Ndoricimpa, Arcade |
| Abstract: | The study examines trade mis-invoicing at both aggregated and disaggregated levels by major trading partners, and by major export and import commodities. Aggregated trade mis-invoicing and disaggregated trade mis-invoicing by major trading partners are computed using DOTS database of the International Monetary Fund (IMF) over the period 19702019. Disaggregated trade mis invoicing by major trading commodities is computed using UN-COMTRADE database over the period 19932019. The study shows that the most occurring practices in trade mis-invoicing are export under-invoicing and import over invoicing. Exports of Burundi to most of its major trading partners are found to 2 Policy Brief No.813 be under-invoiced, while imports of Burundi from its major trading partners are in general over-invoiced. The major trading commodities considered are found to be affected by trade mis-invoicing to a great extent. Moreover, an empirical analysis of the determinants of those two common practices of trade mis-invoicing indicates that financial incentives through tax fraud, civil conflicts, governance, capital account openness, the parallel market premium, and the real exchange rate, are the main determinants of export under-invoicing and import over-invoicing. Drivers of trade mis-invoicing at product level were also analysed for some major export and import commodities. The main product-specific factors of trade mis-invoicing are found to be the parallel market premium, the real exchange rate, governance, and civil conflicts. The study's findings suggest that reducing political instability, having a more open capital account, improving governance, as well as reducing taxes and duties, could be ways to reduce the extent of trade mis-invoicing in Burundi. In addition, more effort is needed in ensuring systematic and transparent reporting of international trade transactions. |
| Date: | 2024–04–11 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:ba5b226b-fc51-4bea-aeda-050bc3d3c179 |
| By: | Cuong, Nguyen Manh; Mutai, Noah C.; Ibeh, Lawrence |
| Abstract: | The Ukraine conflict has profoundly affected global trade and international relations, particularly for Germany, a major player in Europe and the European Union. This study utilizes a Gravity Model analysis to explore Germany’s trade network and assess the impact of the conflict on its trade partnerships. |
| Date: | 2023–11–05 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:p672w_v1 |
| By: | Nguekeng, Bernard; Mignamissi, Dieudonne |
| Abstract: | The objective of this study is to analyse the main effects of the integration of African countries in the global value chainsa (GVCs) on their industrialization level. To this effect, we have specified an industrialization equation that considers the economic characteristics of the continent. We have then estimated that equation by the system GMM estimator method on a sample of 51 African countries with panel data spanning the period 19962018 sourced from international organization databases. The findings of the estimations are the following: (1) the participation and the position of African countries in GVC positively contribute POLICY BRIEF Global Value Chains and Industrialization in Africa Bernard Nguekeng and Dieudonne Mignamissi October 2023 / No.808 2 Policy Brief No.808 to their industrialization. The imports of intermediate goods facilitate the access to foreign machinery and technologies which stimulate local production. Furthermore, the position in value chains that are limited to assembling activities would also allow to achieve significant industrial progress; (2) the main factors influencing the indirect transmission of GVC to industrialization are the human capital and the physical capital; (3) the results are stable as shown by several robustness check tests related to different modalities of integration in GVC, to the conception of a new participation indicator in GVC, and to sub-regional specificities. Based on these results, we recommend policy actions to enhance participation, but also to improve the position in GVC, while at the same time an appropriate strategy would be designed to accumulate human capital and physical capital in the long term. |
| Date: | 2024–04–10 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:cb450df7-200d-4d7c-af72-0022b6dbb92b |
| By: | Bertrand, Nguenkwe Ronie |
| Abstract: | This study explores the ways of facilitation and enhancing intra- Central African Economic and Monetary Community (CEMAC) trade, which has remained structurally weak over more than twenty years, by focusing on the East African Community and the West African Economic and Monetary Union (WAEMU). The study uses a descriptive analysis of trade and the indicators of facilitation of trade in those three communities. An econometric analysis of factors underlying the level of trade in those three communities is conducted using an augmented gravity model. The econometric results demonstrate that the number of POLICY BRIEF Facilitating Regional Trade: Lessons from WAEMU and EAC on How to Increase Trade in CEMAC Nguenkwe Ronie Bertrand October 2023 / No.807 2 Policy Brief No.807 documents and the number of days required to export has a negative and significant impact on trade in EAC and WAEMU, but a positive impact in CEMAC. Infrastructure services, notably the use of the Internet have a negative impact on intra-zone trade in EAC |
| Date: | 2024–04–10 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:101b1645-09a9-45cf-9eb8-9c340ec2a154 |
| By: | Yimer, Addis |
| Abstract: | To capture the impact that cross-country resource endowment differences may have on the FDIgrowth relationship, this study investigates the FDIgrowth nexus in Africa by categorizing the countries as resource-rich and resource-scarce, for the period 20002017. Thus, the study is a modest attempt to answer the following main questions: a) Does FDI inflows contribute to economic growth in the host country after controlling for endogeneity? b) Does being natural resource abundant/scarce country alter the FDIgrowth nexus? Using a System GMM, both the direct and interaction effects of FDI on growth are investigated in POLICY BRIEF The FDI-Growth Nexus: A Comparative Analysis of Resource-Rich and Resource-Scarce African Economies Addis Yimer October 2023 / No.788 2 Policy Brief No.788 a comparative framework across resource-rich and resource-scarce African countries. The results show that the effects of FDI on economic growth vary depending on resource richness of countries. While FDI is found to affect growth positively and significantly in resource-scarce African economies, no significant effect of FDI on growth is identified for the resource-rich category. |
| Date: | 2024–04–10 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:3808f5e4-f0d6-477d-8d80-2b82e3bd366e |
| By: | Feldman, Mark |
| Abstract: | This Perspective argues that the ASEAN-led RCEP agreement and the ASEAN Outlook on the Indo-Pacific have created significant momentum for ASEAN to further reinforce its central role in advancing Asia-Pacific economic integration. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:colfdi:313560 |
| By: | Niass, Dieynaba |
| Abstract: | This paper aims to analyse the effect of natural resources on the supply portfolio of African exports. Based on COMTRADE data on export products from 20002015, a methodological approach is applied using two standard measurement trade diversification indicators: active line counting and the standardised Herfindahl Hirschman index. These indicators are then linked to the status of resource-rich countries (and other controls) in a fixed-effects panel data model. The results of this paper suggest that the presence of oil resources (non-renewable resources) hurts diversification, essentially through the channel of degradation of institutions. Similarly, agricultural products (renewable resources) negatively affect African export diversification (count and index) through the exchange rate channel. This shows the need for Africa to strengthen the quality of institutions by fighting against corruption through transparency in the exploitation and export of natural resources, and through proper management. In addition, African countries must ensure the stability of monetary policies so that a depreciation of the exchange rate can be to their advantage. |
| Date: | 2024–04–30 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:833c768a-09a0-4fb8-aa14-c32511b6b961 |
| By: | Sebastian Heise; Justin R. Pierce; Georg Schaur; Peter K. Schott |
| Abstract: | Heise et al. (2021) develop a model-based empirical measure—sellers per shipment (SPS)—to characterize how firms organize supply chains in response to a quality control problem. High SPS indicates spot-market purchasing with costly inspections, while low SPS suggests long-term relationships where buyers pay an incentive premium to prevent cheating. Here, we document intuitive variation in US importers' SPS across sectors, and that show shipping characteristics such as average price, quantity shipped and shipment frequency are in each sector consistent with the model of sourcing developed in Heise et al. (2021), providing further confidence in the measure. |
| Keywords: | Supply chain; Uncertainty; Trade war; Procurement |
| JEL: | F13 F14 F15 F23 |
| Date: | 2025–02–27 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgif:1405 |
| By: | Yu, Chen |
| Abstract: | The article "AI Revolution: Reshaping Global Value Chains for the Future" explores the transformative impact of artificial intelligence (AI) on global value chains (GVCs). It provides an in-depth analysis of the current landscape of traditional GVCs, the role of AI in reshaping value chains, implications and challenges arising from AI adoption, and future outlook and predictions. The article emphasizes the importance of adaptability, innovation, and responsible AI adoption in navigating the evolving landscape of AI-driven value chains. |
| Date: | 2023–12–29 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:n6hb2_v1 |
| By: | Diallo, Mamadou Abdoulaye; Diallo, Soukeyna; Sika, Mashoudou Maman Chabi |
| Abstract: | The aim of this study was to assess the effect of return migration on labour market integration in Senegal. To this end, we based the study on the recent survey on international migration in Senegal (EMIS-2019), data for which were collected by the Consortium for Economic and Social Research (Consortium pour la recherche economique et sociale, CRES) in collaboration with the World Bank. We used the two-stage residual inclusion (2SRI) method and complemented it by an instrumental variable (IV) approach to account for the potential selection bias associated with return migration. The findings show that return migration had a positive and significant effect on labour market integration. Specifically, the results show that their migration status in the host country, the mode of their return to their country of origin, the skills they acquired in the host country, and their social capital played an important role in their economic reintegration after their return. This study therefore stresses the need for return-migration incentive policies and support for labour market integration of the return migrants. |
| Date: | 2024–08–05 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:7401bbec-0ed2-431f-bee4-b27f21171b3c |
| By: | Taiwo, Shakirudeen; Olofin, Sodik |
| Abstract: | The emerging trend of Foreign Direct Investments (FDI) in Nigeria is diverging in favour of technology, ICT, and manufacturing, which are becoming more sensitive for the evolution of the labour force. With the low levels of technology advancement, skill accumulation, and human capital stock in developing countries, and Nigeria especially, FDI inflows have been identified as major sources of technology, managerial, and technical know-how spillover to developing countries. The accruing knowledge spillover effects of FDI inflows are critical for human capital development to propel technological progress and sustainable economic growth. Therefore, this study investigated the impacts of FDI on human capital and the economic prospects of workers in Nigerias manufacturing and ICT sectors and highlighted the country specific conditions needed to adequately internalize FDI spillover effects on Nigeria's human capital. This study's data analysis is based on a combination of qualitative and quantitative approaches. The findings revealed that FDI inflows impact human capital development in Nigeria. Meanwhile, the kind of FDI inflows, the measure of human capital development and the sector matter in the relationship, as aggregated analysis yields little knowledge benefit. Specifically, this study revealed that all the types of FDI, except merger and acquisition, have varying impacts on the components of human capital development, while efficiency-seeking FDI is the most important. The policy implication from this study re-emphasizes the need for further improvement in the regulatory environment, general ease of doing business and incentive management. |
| Date: | 2024–08–05 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:2ddedcc0-a133-481b-9807-7da093a085d0 |
| By: | BAZIE, Porto; Alain SIRI, Alain |
| Abstract: | Meeting the challenge of human capital development is a concern for governments and development practitioners in developing countries. However, foreign direct investment (FDI) inflows appear to be a means of meeting this challenge by increasing incomes, mobilising tax revenues, bvoosting productivity and disseminating skills and technologies. The purpose of this paper is to analyse the FDI effects on human capital development through the channel of tax revenue mobilisation. A structural simultaneous equation model, ARDL modelling, and interviews, were used to analyse the data. The results indicate that FDI is a vehicle for tax revenue mobilisation. They also show that tax revenues increase spending on primary, secondary and tertiary education, while FDI significantly enhances primary and tertiary education levels in the long term but reduces secondary education levels in Burkina Faso. In the short term, FDI reduces tertiary education levels but does not affect primary and secondary education levels. The results further show that the Corporate Social Responsibility (CSR) channel is also an effective means of developing human capital through FDI. |
| Date: | 2024–08–05 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:04acfa37-8c1b-46ac-832d-1233b968a880 |
| By: | Herve, Nenghem Takam |
| Abstract: | The objective of this thesis is to analyze the effects of capital flows on the economic cycles of the countries of the CEMAC zone. We opted for our thesis for an econometric approach based on panel data made up of all CEMAC countries. Our study period extends from 1985 to 2019. In the first chapter, we analyze the effect of remittances on fluctuations in economic activity in CEMAC countries. The methodological approach used is the PVAR. The results of this first chapter show that remittances directly influence fluctuations in the economic activity of CEMAC countries, on the one hand. And on the other hand, remittances play a stabilizing role insofar as they are counter-cyclical in nature with fluctuations in production per capita; which suggests, according to the literature, an altruistic motivation. The study also indicates that remittances, although interacting with other variables, can play a key role in mitigating the effects of negative shocks on production. Moreover, the relationship is unidirectional from remittances to fluctuations in economic activity. In the second chapter, we examine the effects of official development assistance on the economic cycles of CEMAC countries. This objective was achieved by using the ARDL method to capture the relationship between APD and cycle in the long term. The results reveal that in the short term, official development assistance, in addition to being negative, has no significant effects on the output gap of CEMAC countries. On the other hand, ODA, in addition to having a positive and statistically significant long-term influence on the output gap, is procyclical. This significance of ODA on the output gap is not negligible. Finally in the third chapter, we identify the link between FDI and the synchronization of economic cycles in the CEMAC zone. The methodology used to achieve this objective is based on Parks Generalized Feasible Least Squares (1967). The results show, on the one hand, that FDI has a positive effect on the synchronization of the economic cycles of the countries of the CEMAC zone; and on the other hand that the exuberance of economic cycles through short-term flows, international value chains resulting from foreign direct investment and specialization induced by risk sharing are the channels through which direct investment foreigners affect the synchronization of the economic cycles of the CEMAC countries. Keywords: Remittances, official development assistance, foreign direct investment, economic cycles, CEMAC. |
| Date: | 2024–04–10 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:1ae3f317-7aff-4baf-a6a4-13c9a29de1aa |
| By: | Yuqing Xing (National Graduate Institute for Policy Studies, Tokyo, Japan); Peihao Yang (China Electronics Standardization Institute, Beijing, China; University of International Business and Economics, Beijing, China); Kun Cai (University of International Business and Economics, Beijing China); Zhi Wang (School of Economics and Management, Tsinghua University, Beijing, China; University of International Business and Economics, Beijing, China; George Mason University, USA) |
| Abstract: | This study analyzes the supply chains, technological independence and domestic value added (DVA) of the Chinese EV industry by tearing down two popular models: the BYD Seal and the Tesla Model 3. It is the first study to use teardown data for two representative EV models to estimate the distribution of the value added in China EVs and the tasks performed by the makers’ suppliers. We find that 92% of BYD’s suppliers are in China and 65% of them are Chinese domestic firms, which produced 82% of the parts and components embedded in the BYD Seal. The localization of Tesla Shanghai’s supply chains is even higher, with more than 96% of Tesla Shanghai's suppliers in China, and 62 local Chinese firms participating in the supply chains to produce almost half of the parts and components in Model 3. 90% of the BYD Seal’s retail price is DVA generated in China, while only 45% of the total value of the Model 3 manufactured at the Shanghai factory is attributed to China. The extensive participation of Chinese firms in supply chains BYD and Tesla implies that the Chinese EV industry has achieved technological independence in the sector. However, foreign firms remain dominant in the supply of semiconductor chips: 97% of the chips used in the Model 3 are either imported or manufactured by wholly foreign owned ventures, while more than 50% of the semiconductor chips used in the BYD Seal are procured from foreign suppliers. |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:ngi:dpaper:24-15 |
| By: | Athanasia Chalari |
| Abstract: | One of Brexit’s aftermaths, has affected those UK residents who had been identified as ‘EU citizens’ prior Brexit, and re-identified as ‘immigrants’ after Brexit. Based on the case of 30 indepth interviews with Greeks (European citizens), residing in UK between 5 and 20 years, this study explores identity transition as participants negotiate their citizenship and immigration identities. The main findings of this phenomenological study depict four aspects of identity negotiations (primarily involving ethnic, citizenship and immigration identities): a) erroneous resemblance between civic and cultural European identity, b) tendencies of prejudice towards non-European identities, c) coherent albeit unproblematic lack of belonging towards the host culture and d) underlying conflicting identity perceptions and experiences signalling ongoing identity(ies) in transition. |
| Keywords: | Brexit, transitional, citizenship, immigration, ethnic identities |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:hel:greese:206 |
| By: | Kirui, Benard Kipyegon |
| Abstract: | Over the past decade, remittance flows to sub-Saharan Africa grew at an average of 12.9% and is expected to increase in the coming decade, however, the high cost of remittances remains a constraint that limits regular remittance flows. About 9.1 percent of remittance flows to sub-Saharan Africa is absorbed by transfer cost making it the most expensive remittance recipient region. With evidence that mobile money services reduce transaction costs for internal remittances, the introduction of mobile money services in international remittances should have the same effect. Against this backdrop, this study investigates the effect POLICY BRIEF The Role of Mobile Money in International Remittances: Evidence from Sub-Saharan Africa Benard Kipyegon Kirui October 2023 / No.805 2 Policy Brief No.805 of introduction of mobile money services on international remittance transfer costs and determine the effect of international remittance transfer costs on international remittance flows. Least squares dummy variable model and a system GMM is applied to address the first and second objective, respectively. International remittance transfer cost is lower by 46% for corridors that incorporate mobile money in international money transfer channels compared to those that do not. Controlling for other factors, the gap between corridors that incorporate mobile money and those that do not goes down to 11.5%. Thus, a reduction in remittance transfer costs can be achieved by improving cross border mobile money services interoperability. |
| Date: | 2024–04–10 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:6510bb93-0565-4581-9082-45daca72918a |