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International Demand Spillovers in South-South Exports: Application to Sub-Saharan Africa and Developing Asia

Thi Anh-Dao Tran (), Diadié Diaw () and Arsène Rieber ()
Additional contact information
Thi Anh-Dao Tran: CREAM, University of Rouen, Postal: French Institute of Research for Development, CREAM, University of Rouen, IRD Vietnam, Building 2G, Van Phuc Diplomatic Compound, 298 Kim Ma, Ba Dinh, Hanoi, Vietnam
Arsène Rieber: CREAM, University of Rouen, Postal: CREAM, University of Rouen, 3, avenue Pasteur, F-76186 Rouen Cedex 1, France

Journal of Economic Integration, 2012, vol. 27, 410-436

Abstract: This paper aims at analyzing how export performance of developing countries differs across destinations. With application to Sub-Saharan Africa and Asia, we first employ a gravity equation to break down each region’s export performance, separating the contribution of foreign market access from internal supply capacity. Then, we identify the key determinants of countries’export performance, both theoretically and empirically. Our contribution is to introduce demand spillovers that help market access to improve supply conditions. Regression reveals a positive interaction between the two components, with a higher elasticity of exports with respect to market access in the particular case of South-South trade flows.

Keywords: Internal Supply Capacity; Foreign Market Access; Demand Spillovers; South South Trade; Sub-Saharan Africa; Developing Asia (search for similar items in EconPapers)
JEL-codes: F14 F15 O11 O57 (search for similar items in EconPapers)
Date: 2012
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Related works:
Working Paper: International Demand Spillovers in South-South Exports: Application to Sub-Saharan Africa and Developing Asia (2012)
Working Paper: International Demand Spillovers in South-South Exports: Application to Sub-Saharan Africa and Developing Asia (2012)
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