Working Paper 359- Comparative Advantage and Growth Potential of the Democratic Republic of Congo

Rachidi Kotchoni and Franck M. Adoho ()
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Franck M. Adoho: World Bank, https://www.worldbank.org/en/home

Working Paper Series from African Development Bank

Abstract: We use disaggregated trade data for the years 2014–2018 to identify the areas of revealed and latent comparative advantage of the Democratic Republic of Congo (DRC). We find that the DRC’s export basket is highly concentrated and dominated by products with low value-added and potential income that are derived from copper, cobalt, tin, diamonds, and oils. We identify a number of products that the DRC could easily develop given its areas of revealed comparative advantage, including machinery for filtering or purifying water, traffic control equipment, electrical apparatus, photographic laboratory equipment, and printing machinery. The development of such products can help the DRC achieve the dual goals of diversifying its exports and accelerating the structural transformation of its economy. Policymakers can use these products as a starting point to conceive adequate industrial and trade policies that pursue this dual goal.

Keywords: Economic Complexity; Export Sophistication; Latent Comparative Advantage; Product Space; Revealed Comparative Advantage; Trade JEL classification: F10; F14 (search for similar items in EconPapers)
Date: 2021-11-22
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