Trade Liberalization and Patterns of Trade in Sub- Saharan Africa: A Panel Data Analysis
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Date
2010-05
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Addis Ababa University
Abstract
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.
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Keywords
Applied Trade Policy Analysis, Trade Policy Analysis