Democratic Republic of Congo : Product and Market Concentration and the Vulnerability to Exogenous Shocks
The high level of exports and their product and market concentration exposes the Democratic Republic of Congo to the economic fluctuations of the country's trade partners. This paper uses the United Nations Conference on Trade and Development...
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| Format: | Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2016/06/26442877/democratic-republic-congo-product-market-concentration-vulnerability-exogenous-shocks http://hdl.handle.net/10986/24539 |
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okr-10986-245392021-04-23T14:04:22Z Democratic Republic of Congo : Product and Market Concentration and the Vulnerability to Exogenous Shocks Bou-Habib, Chadi Kebede, Ephraim EXPORT PATTERNS EXPORT RECEIPTS TRADE VOLUME MERCHANDISE REGULATORY FRAMEWORK MACROECONOMIC INSTABILITY HUMAN CAPITAL EXPORT MARKETS VALUE ADDED ECONOMIC GROWTH PRODUCTION VOLATILITY TRADE COSTS MERCHANDISE EXPORTS FINANCIAL CRISIS INCOME VALUE CREDIT MACROECONOMICS EXPORT PERFORMANCE DEMAND GDP PER CAPITA EXPORTS ELASTICITY TRADE FLOWS PRICE CHANGES ECONOMIC FLUCTUATIONS INCOMES EXPENDITURES AGRICULTURE CURRENT ACCOUNT DEFICIT EXPORT PROMOTION GRAVITY MODEL TRADE FACILITATION PRICE MARKET EXPORT REVENUE EXPORT DEPENDENCE TRADE SURPLUS SUPPLY CHAIN MONETARY POLICIES DEVELOPED COUNTRIES TRADE VALUE TRADE DATA FOREIGN MARKETS TRADE MACROECONOMIC STABILITY GDP TRADE PARTNERS GOODS MARKET CONCENTRATION INTERNATIONAL MARKET EXOGENOUS SHOCKS GROWTH RATE BILATERAL TRADE INVESTMENT CURRENCY DEVELOPMENT ECONOMICS EXPORT EARNINGS INTERNATIONAL PRICES CURRENT ACCOUNT SUPPLY TRADE DIVERSIFICATION FOREIGN CURRENCIES SURPLUS PRODUCTS CUSTOMS EXPORT PROMOTION AGENCIES EXTERNAL SHOCKS EXPORT VOLUMES TRADE PARTNER INVESTMENTS EXPORT BASKET EXPORT MONOPOLISTIC COMPETITION MARKETS ACCESS IMPORTS PRODUCT NATURAL RESOURCES EXPORT DIVERSIFICATION GROSS DOMESTIC PRODUCT EXPORT SHARE EXPORT MARKET EXPORT DYNAMICS PRICES VALUE OF EXPORTS FOREIGN CURRENCY DEVELOPMENT POLICY LDCS The high level of exports and their product and market concentration exposes the Democratic Republic of Congo to the economic fluctuations of the country's trade partners. This paper uses the United Nations Conference on Trade and Development trade data set to analyze the Democratic Republic of Congo's export patterns for the period 1960-2014. The data confirm that the country's exports remain highly concentrated. The product concentration on minerals is high and reaches exceptional levels. The geographic concentration is also high, while there is a shift in destinations. Hence, EU27, traditionally the main market destination for the Democratic Republic of Congo, lost its importance to China for most of the past decade. This trend continued to increase in the past few years from 2010 to 2013. The clear prevalence of commodity products within the Democratic Republic of Congo's exports and the higher exposure to the Chinese economic cycle are sources of vulnerability. The empirical analysis indicates that the country's exports appear to be significantly sensitive to foreign demand fluctuations. This exposure increases the volatility of the country's macroeconomic framework to exogenous shocks, with negative consequences on growth in gross domestic product and on external balances. The analysis concludes that increasing the Democratic Republic of Congo's resilience requires product and market diversification of exports. This diversification requires improvements in the investment climate and business environment, with emphasis on skills and infrastructure. 2016-06-14T22:11:22Z 2016-06-14T22:11:22Z 2016-06 Working Paper http://documents.worldbank.org/curated/en/2016/06/26442877/democratic-republic-congo-product-market-concentration-vulnerability-exogenous-shocks http://hdl.handle.net/10986/24539 English en_US Policy Research Working Paper;No. 7700 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Congo, Democratic Republic of |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
EXPORT PATTERNS EXPORT RECEIPTS TRADE VOLUME MERCHANDISE REGULATORY FRAMEWORK MACROECONOMIC INSTABILITY HUMAN CAPITAL EXPORT MARKETS VALUE ADDED ECONOMIC GROWTH PRODUCTION VOLATILITY TRADE COSTS MERCHANDISE EXPORTS FINANCIAL CRISIS INCOME VALUE CREDIT MACROECONOMICS EXPORT PERFORMANCE DEMAND GDP PER CAPITA EXPORTS ELASTICITY TRADE FLOWS PRICE CHANGES ECONOMIC FLUCTUATIONS INCOMES EXPENDITURES AGRICULTURE CURRENT ACCOUNT DEFICIT EXPORT PROMOTION GRAVITY MODEL TRADE FACILITATION PRICE MARKET EXPORT REVENUE EXPORT DEPENDENCE TRADE SURPLUS SUPPLY CHAIN MONETARY POLICIES DEVELOPED COUNTRIES TRADE VALUE TRADE DATA FOREIGN MARKETS TRADE MACROECONOMIC STABILITY GDP TRADE PARTNERS GOODS MARKET CONCENTRATION INTERNATIONAL MARKET EXOGENOUS SHOCKS GROWTH RATE BILATERAL TRADE INVESTMENT CURRENCY DEVELOPMENT ECONOMICS EXPORT EARNINGS INTERNATIONAL PRICES CURRENT ACCOUNT SUPPLY TRADE DIVERSIFICATION FOREIGN CURRENCIES SURPLUS PRODUCTS CUSTOMS EXPORT PROMOTION AGENCIES EXTERNAL SHOCKS EXPORT VOLUMES TRADE PARTNER INVESTMENTS EXPORT BASKET EXPORT MONOPOLISTIC COMPETITION MARKETS ACCESS IMPORTS PRODUCT NATURAL RESOURCES EXPORT DIVERSIFICATION GROSS DOMESTIC PRODUCT EXPORT SHARE EXPORT MARKET EXPORT DYNAMICS PRICES VALUE OF EXPORTS FOREIGN CURRENCY DEVELOPMENT POLICY LDCS |
| spellingShingle |
EXPORT PATTERNS EXPORT RECEIPTS TRADE VOLUME MERCHANDISE REGULATORY FRAMEWORK MACROECONOMIC INSTABILITY HUMAN CAPITAL EXPORT MARKETS VALUE ADDED ECONOMIC GROWTH PRODUCTION VOLATILITY TRADE COSTS MERCHANDISE EXPORTS FINANCIAL CRISIS INCOME VALUE CREDIT MACROECONOMICS EXPORT PERFORMANCE DEMAND GDP PER CAPITA EXPORTS ELASTICITY TRADE FLOWS PRICE CHANGES ECONOMIC FLUCTUATIONS INCOMES EXPENDITURES AGRICULTURE CURRENT ACCOUNT DEFICIT EXPORT PROMOTION GRAVITY MODEL TRADE FACILITATION PRICE MARKET EXPORT REVENUE EXPORT DEPENDENCE TRADE SURPLUS SUPPLY CHAIN MONETARY POLICIES DEVELOPED COUNTRIES TRADE VALUE TRADE DATA FOREIGN MARKETS TRADE MACROECONOMIC STABILITY GDP TRADE PARTNERS GOODS MARKET CONCENTRATION INTERNATIONAL MARKET EXOGENOUS SHOCKS GROWTH RATE BILATERAL TRADE INVESTMENT CURRENCY DEVELOPMENT ECONOMICS EXPORT EARNINGS INTERNATIONAL PRICES CURRENT ACCOUNT SUPPLY TRADE DIVERSIFICATION FOREIGN CURRENCIES SURPLUS PRODUCTS CUSTOMS EXPORT PROMOTION AGENCIES EXTERNAL SHOCKS EXPORT VOLUMES TRADE PARTNER INVESTMENTS EXPORT BASKET EXPORT MONOPOLISTIC COMPETITION MARKETS ACCESS IMPORTS PRODUCT NATURAL RESOURCES EXPORT DIVERSIFICATION GROSS DOMESTIC PRODUCT EXPORT SHARE EXPORT MARKET EXPORT DYNAMICS PRICES VALUE OF EXPORTS FOREIGN CURRENCY DEVELOPMENT POLICY LDCS Bou-Habib, Chadi Kebede, Ephraim Democratic Republic of Congo : Product and Market Concentration and the Vulnerability to Exogenous Shocks |
| geographic_facet |
Africa Congo, Democratic Republic of |
| relation |
Policy Research Working Paper;No. 7700 |
| description |
The high level of exports and their
product and market concentration exposes the Democratic
Republic of Congo to the economic fluctuations of the
country's trade partners. This paper uses the United
Nations Conference on Trade and Development trade data set
to analyze the Democratic Republic of Congo's export
patterns for the period 1960-2014. The data confirm that the
country's exports remain highly concentrated. The
product concentration on minerals is high and reaches
exceptional levels. The geographic concentration is also
high, while there is a shift in destinations. Hence, EU27,
traditionally the main market destination for the Democratic
Republic of Congo, lost its importance to China for most of
the past decade. This trend continued to increase in the
past few years from 2010 to 2013. The clear prevalence of
commodity products within the Democratic Republic of
Congo's exports and the higher exposure to the Chinese
economic cycle are sources of vulnerability. The empirical
analysis indicates that the country's exports appear to
be significantly sensitive to foreign demand fluctuations.
This exposure increases the volatility of the country's
macroeconomic framework to exogenous shocks, with negative
consequences on growth in gross domestic product and on
external balances. The analysis concludes that increasing
the Democratic Republic of Congo's resilience requires
product and market diversification of exports. This
diversification requires improvements in the investment
climate and business environment, with emphasis on skills
and infrastructure. |
| format |
Working Paper |
| author |
Bou-Habib, Chadi Kebede, Ephraim |
| author_facet |
Bou-Habib, Chadi Kebede, Ephraim |
| author_sort |
Bou-Habib, Chadi |
| title |
Democratic Republic of Congo : Product and Market Concentration and the Vulnerability to Exogenous Shocks |
| title_short |
Democratic Republic of Congo : Product and Market Concentration and the Vulnerability to Exogenous Shocks |
| title_full |
Democratic Republic of Congo : Product and Market Concentration and the Vulnerability to Exogenous Shocks |
| title_fullStr |
Democratic Republic of Congo : Product and Market Concentration and the Vulnerability to Exogenous Shocks |
| title_full_unstemmed |
Democratic Republic of Congo : Product and Market Concentration and the Vulnerability to Exogenous Shocks |
| title_sort |
democratic republic of congo : product and market concentration and the vulnerability to exogenous shocks |
| publisher |
World Bank, Washington, DC |
| publishDate |
2016 |
| url |
http://documents.worldbank.org/curated/en/2016/06/26442877/democratic-republic-congo-product-market-concentration-vulnerability-exogenous-shocks http://hdl.handle.net/10986/24539 |
| _version_ |
1764456985947799552 |