CAN A DEEP PREFERENTIAL TRADE AGREEMENT BOOST GLOBAL VALUE CHAIN PARTICIPATION IN SUB-SAHARAN AFRICA?
Evelyn Nwamaka Ogbeide-Osaretin () and
Timothy Igbafe Aliu
Additional contact information
Evelyn Nwamaka Ogbeide-Osaretin: Department of Economics, Postal: Edo State University, Uzairue, Edo State, Nigeria, https://www.ijep.org/
Timothy Igbafe Aliu: Department of Economics, Postal: Edo State University, Uzairue, Edo State, Nigeria, https://www.ijep.org/
Ilorin Journal of Economic Policy, 2022, vol. 9, issue 1, 45-56
The increasing relevance of the global value chains (GVCs), and the deepening preferential trade agreements (PTAs), have recently increased the strength of globalisation. Hence, many developing counties are increasing their PTAs to reap the benefits of GVC. However, given the lack of the necessary financial means, and the low level of industrialisation, developing countries could remain providers of low-value primary materials, and miss out on the real gain of GVC. The present study examined if SubSaharan Africa's (SSA) preferential trade agreement increases their level of participation in GVC. A panel study approach was employed using data of some countries in SSA for the period 2000-2020 in static and dynamic models. The analysis showed that deep PTAs have a significantly positive impact on the level of GVC in SSA. It was found that the participation of SSA in GVC can be enhanced by the level of development and attraction of FDI. The previous levels of GVC were also found to have an increasing and significant impact on the current level of GVC participation in SSA. Increasing the depth and amount of PTAs, the level of development, and the ability to attract FDI are recommended to increase the level of SSA’s participation in GVC. Also, an increase in access to tertiary education and the volume of export has the potential of increasing SSA’s participation rate in the GVCs.
Keywords: Globalisation; global value chain; trade agreement; Tariff; Panel studies (search for similar items in EconPapers)
JEL-codes: C23 F13 F15 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://www.ijep.org/issues/volume9issue92022/v1/Ogbeide-Osaretin2022.pdf Full text (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ris:ilojep:0056
Access Statistics for this article
Ilorin Journal of Economic Policy is currently edited by Gafar Ijaiya, Ahmed Yakubu, Folorunsho Ajide and Godwin Oluseye Olasehinde-Williams
More articles in Ilorin Journal of Economic Policy from Department of Economics, University of Ilorin Contact information at EDIRC.
Bibliographic data for series maintained by Daniel Akanbi ().