Can Intra-Regional Trade Act as a Global Shock Absorber in Africa?

Zuzana Brixiová Schwidrowski, Qingwei Meng () and Mthuli Ncube ()
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Qingwei Meng: African Development Bank

No 9205, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: The global financial crisis and the subsequent uneven recovery have underscored the need for Africa's resilience to output and other shocks originated in the rest of the world. A comparison of two regional economic communities – the East African Community (EAC) and the Southern Africa Customs Union (SACU) – suggests that deeper intra-regional, and in particular intra-industry, trade ties have contributed to the EAC's resilience to external output shocks. More broadly, intra-regional and intra-African trade with fast-growing economies, together with geographically diversified trade links, can strengthen the capacity of African countries to absorb global output shocks. Besides helping shield countries from external shocks, intra-regional trade also supports economic diversification and participation in regional value chains.

Keywords: Africa; output co-movement; intra-regional trade; regional economic communities (search for similar items in EconPapers)
JEL-codes: E32 F15 F4 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2015-07
New Economics Papers: this item is included in nep-mac
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Citations: View citations in EconPapers (2)

Published - published in: World Economics, 2015, 16 (3), 141 - 162

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Related works:
Journal Article: Can Intra-Regional Trade Act as a Global Shock Absorber in Africa? (2015)
Working Paper: Can Intra-Regional Trade Act as a Global Shock Absorber in Africa? (2015)
Working Paper: Can Intra-Regional Trade Act as a Global Shock Absorber in Africa? (2014)
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