On the Complementarity of Regional and Global Trade
Sourcing intermediate goods efficiently is essential for a country's production capacity. Countries located in a neighborhood providing a wide range of intermediate goods cheaply available can take advantage of scale economies to reduce their production costs and improve their global competitiv...
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| Language: | English |
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Washington, DC: World Bank
2012
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| Online Access: | http://hdl.handle.net/10986/9181 |
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okr-10986-91812021-04-23T14:02:44Z On the Complementarity of Regional and Global Trade Coulibaly, Souleymane World Development Report 2009 Sourcing intermediate goods efficiently is essential for a country's production capacity. Countries located in a neighborhood providing a wide range of intermediate goods cheaply available can take advantage of scale economies to reduce their production costs and improve their global competitiveness. Many empirical works have documented the sharp increase in intra-industry trade and particularly trade in intermediate goods within developed neighborhoods such as the EU, North America and Northeast Asia. But what about developing neighborhoods? This paper uses COMTRADE aggregate exports of capital goods, intermediate goods, consumer goods and raw materials for 2002-06 to evaluate how a country's import of intermediate goods from its neighbors impacts its global export performance. For Sub-Saharan African countries particularly, there is a strong positive correlation between countries previous regional import of intermediate goods and their current exports, indicating that developing neighborhoods are also experiencing such complementarity between regional and global trade, the relation being stronger beyond a threshold of global competitiveness. These results call for a two-pronged policy action encompassing regional and global integration and putting a sub-set of Sub-Saharan countries close to that global competitiveness threshold at the heart of a neighborhood growth strategy. 2012-06-26T15:40:30Z 2012-06-26T15:40:30Z 2009 http://hdl.handle.net/10986/9181 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC: World Bank Africa |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English |
| topic |
World Development Report 2009 |
| spellingShingle |
World Development Report 2009 Coulibaly, Souleymane On the Complementarity of Regional and Global Trade |
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Africa |
| description |
Sourcing intermediate goods efficiently is essential for a country's production capacity. Countries located in a neighborhood providing a wide range of intermediate goods cheaply available can take advantage of scale economies to reduce their production costs and improve their global competitiveness. Many empirical works have documented the sharp increase in intra-industry trade and particularly trade in intermediate goods within developed neighborhoods such as the EU, North America and Northeast Asia. But what about developing neighborhoods? This paper uses COMTRADE aggregate exports of capital goods, intermediate goods, consumer goods and raw materials for 2002-06 to evaluate how a country's import of intermediate goods from its neighbors impacts its global export performance. For Sub-Saharan African countries particularly, there is a strong positive correlation between countries previous regional import of intermediate goods and their current exports, indicating that developing neighborhoods are also experiencing such complementarity between regional and global trade, the relation being stronger beyond a threshold of global competitiveness. These results call for a two-pronged policy action encompassing regional and global integration and putting a sub-set of Sub-Saharan countries close to that global competitiveness threshold at the heart of a neighborhood growth strategy. |
| author |
Coulibaly, Souleymane |
| author_facet |
Coulibaly, Souleymane |
| author_sort |
Coulibaly, Souleymane |
| title |
On the Complementarity of Regional and Global Trade |
| title_short |
On the Complementarity of Regional and Global Trade |
| title_full |
On the Complementarity of Regional and Global Trade |
| title_fullStr |
On the Complementarity of Regional and Global Trade |
| title_full_unstemmed |
On the Complementarity of Regional and Global Trade |
| title_sort |
on the complementarity of regional and global trade |
| publisher |
Washington, DC: World Bank |
| publishDate |
2012 |
| url |
http://hdl.handle.net/10986/9181 |
| _version_ |
1764408773164662784 |