DOES NATURAL RESOURCES ENDOWMENT AFFECT EXPORT DIVERSIFICATION IN AFRICA? A CROSS-COUNTRY ANALYSIS

Dieynaba Niass

No 333416, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: This research aims to analyze the effect of natural resources on the supply portfolio of African exports. Based on COMTRADE data on export products from 2000-to 2015, we apply a methodological approach based on two standard measurements of trade diversification indicators: active lines counting and the standardized Herfindahl-Hirschman index. These indicators are then linked to the status of resources-rich countries (and other controls) in the fixed-effects panel data model. The results of this article suggest that the presence of oil resources (non-renewable resources) has a negative effect on diversification, essentially through the channel of the degradation of institutions. Similarly, agricultural products (renewable resources) negatively affect African exports diversification (count and index). This effect is captured through the exchange rate and degradation of institutions' channels. This shows the need for the African continent to develop its own agricultural sector which could be a good strategy for diversification, but also to strengthen the quality of its institutions for good management of natural resources.

Keywords: International Relations/Trade; International Relations/Trade (search for similar items in EconPapers)
Pages: 27
Date: 2022
New Economics Papers: this item is included in nep-env and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/333416/files/10999.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:333416

Access Statistics for this paper

More papers in Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().