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

Mthuli Ncube (), Zuzana Brixiová () and Qingwei Meng ()

No wp1073, William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan

Abstract: The global financial crisis has reiterated the need for Africa to build resilience to global output shocks. In this paper we examine empirically the role of intra-regional and intra-African trade linkages in being an absorber of the global output shocks in two African regional economic communities. We find that deeper intra-regional and intra-African trade ties have helped the East African Community (EAC) absorb the global output shocks. In contrast, the Southern Africa Custom Union (SACU) region has been less able to cope with global output shocks partly due to weaker regional integration. Intra-regional and intra-African trade with fast-growing economies, together with geographically diversified trade links, can strengthen the capacity to absorb global shocks.

Keywords: Intra-regional trade; output co-movement; regional economic communities, Africa (search for similar items in EconPapers)
JEL-codes: E32 F42 F15 C53 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-afr, nep-int and nep-mac
Date: 2014-02-01
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http://deepblue.lib.umich.edu/bitstream/2027.42/132972/1/wp1073.pdf

Related works:
Journal Article: Can Intra-Regional Trade Act as a Global Shock Absorber in Africa? (2015) Downloads
Working Paper: Can Intra-Regional Trade Act as a Global Shock Absorber in Africa? (2015) Downloads
Working Paper: Can Intra-Regional Trade Act as a Global Shock Absorber in Africa? (2015) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:wdi:papers:2014-1073

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