Applied Economic Modeling And Forecasting With (Financial Policy Analysis and Management)

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Trade Liberalization and Patterns of Trade in Sub- Saharan Africa: A Panel Data Analysis
(Addis Ababa University, 2010-05) Lachisa, Gidisa; Estiphanos, Girma (PhD)
This paper examines the impact of trade liberalization on sectoral export performance of Sub-Saharan Africa countries using export supply function between the periods 1980 to 2006. The underlying base of the study is the theoretical justification that trade liberalization will lead countries to specialize and export commodities of their comparative advantage. A static panel data analysis based on fixed effect and random effect model was adopted. The main findings are while trade liberalization has a significant positive impact on manufactured export performance; its impact on primary commodity export performance is not worth mentioning. Production capacity of countries in SSA is important factor for the export performance of countries both at aggregate and disaggregate levels. The other explanatory variables are more important in explaining the manufactured export performance.