Trade policy options for export diversification: The case of Mali, Chad, Niger, and Guinea

Nihal Pitigala; Jose Lopez-Calix

doi:10.24294/jipd.v4i2.1200

Trade policy options for export diversification: The case of Mali, Chad, Niger, and Guinea

Nihal Pitigala, Jose Lopez-Calix

Article ID: 1200
Vol 4, Issue 2, 2020

VIEWS - 1142 (Abstract) 2228 (PDF)

Abstract

The landlocked and fragile countries’ ability to create a sustainable path to economic growth and poverty reduction is inextricably linked to their export diversification potential, itself related to their connectivity within themselves, in the region, and other external markets. Mali, Chad, and Niger are first challenged by their geography—their landlocked nature with their vast and thinly populated space serves to isolate the most vulnerable communities from external and internal markets. Adding to these geographic disadvantages non-landlocked is incentive environment—defined by high and variable customs common external tariff regimes resulting from multiple overlapping regional trade arrangements—places a wedge between domestic and international prices, provides a disincentive to exports in favor of non-tradable and domestic-oriented sectors. By bringing greater coherence and convergence between the many common external tariff regimes in operation and the rationalization of their structures, and improving connectivity within and between markets, Mali, Chad, Niger, and Guinea can better promote the reallocation of resources toward tradable goods and services, putting the countries on a path toward greater economic inclusion and sustainable growth.

Keywords

trade policy; empirical studies on trade; economic integration; diversification

Full Text:

PDF

References

Agosin MR (2007). “Export diversification and growth in emerging economies”. Working Papers SDT233. Santiago, Chile: Department of Economics, University of Chile.

Al-Marhubi F (2000). “Export diversification and growth: An empirical investigation”. Applied Economics Letters, 7(9): 559–562. https://doi.org/10.1080/13504850050059005.

Benjamin N and Pitigala N (2017). “Trade diagnostic on Niger”. Background Paper for the Study on Niger: Exports Diversification. Mimeo.

Behar A and Manners P (2008). “Logistics and exports”. CSAE WPS/2008-13. Oxford, UK: Centre for the Study of African Economies (CSAE).

Bleaney M and Greenaway D (2001). “The impact of terms of trade and real exchange volatility on investment and growth in sub-Saharan Africa”. Journal of Development Economics, 65(2): 491–500. https://doi.org/10.1016/S0304-3878(01)00147-X.

Brenton P and Newfarmer R (2009). “Watching more than the Discovery Channel to diversify exports”. In: Newfarmer R, Shaw W and Walkenhorst P (Eds.). Breaking in New Markets: Emerging Lesson for Export Diversification (pp. 111–126). Washington, DC, USA: World Bank. https://doi.org/10.1596/978-0-8213-7637-9.

Chenery H (1979). Structural Change and Development Policy. Baltimore, MD, USA: Johns Hopkins University Press.

de Ferranti D, Perry GE, Lederman D and Maloney WF (2002). From Natural Resources to the Knowledge Economy. Washington, DC, USA: World Bank. https://doi.org/10.1596/0-8213-5009-9.

Feenstra R and Kee HL (2004). “Export variety and country productivity”. Policy Research Working Paper 3412. Washington, DC, USA: World Bank. https://doi.org/10.1596/1813-9450-3412.

Gourdon J and Maur J (2014). Estimating the Poverty Impact of the ECOWAS Common External Tariff. Mimeo, Draft. Washington, DC, USA: World Bank.

Ghosh AR and Ostry JD (1994). “Export instability and the external balance in developing countries”. IMF Staff Papers, 41(2): 214–235. https://doi.org/10.2307/3867507.

Guitiérrez de Piñeres A and Ferrantino M (2000). Export Dynamics and Economic Growth in Latin America. Burlington, VT, USA: Ashgate Publishing Ltd.

Hakala T (2020) Export Diversification as a Contributor to Economic Growth. Master’s thesis. Alto University, Finland.

Hoffmann LK and Melly P (2015). Nigeria’s Booming Borders: The Drivers and Consequences of Unrecorded Trade. London, UK: Chatham House, Royal Institute of International Affairs.

Imbs J and Wacziarg R (2003). “Stages of diversification”. American Economic Review, 93(1): 63–86. https://doi.org/10.1257/000282803321455160.

International Monetary Fund (IMF) (2015). Regional Economic Outlook for Sub-Saharan Africa. Washington, DC, USA: IMF.

Kaminski B and Mitra S (2010). Skeins of Silk: Borderless Bazaars and Border Trade in Central Asia. Washington, DC, USA: World Bank.

Lederman D and Maloney WF (2012). Does What You Export Matter? In Search of Empirical Guidance for Industrial Policies. Washington, DC, USA: World Bank. https://doi.org/10.1596/978-0-8213-8491-6.

Lederman D and Maloney WF (2007). “Neither curse nor destiny: Introduction to natural resources and development”. In: Lederman D and Maloney WF (Eds.), Natural Resources: Neither Curse nor Destiny. pp. 1–14. Washington, DC, USA: World Bank; Palo Alto,CA,USA: Stanford University Press. https://doi.org/10.1596/978-0-8213-6545-8.

Love J (1986). “Commodity concentration and export earnings instability: A shift from cross-section to time series analysis”. Journal of Development Economics, 24(2): 239–248. https://doi.org/10.1016/0304-3878(86)90090-8.

McMillan M, Rodrik D and Verduzco-Gallo Í (2014). “Globalization, structural change, and productivity growth, with an update on Africa”. World Development, 63: 11–32. https://doi.org/10.1016/j.worlddev.2013.10.012.

McIntyre A, Xin LM, Wang K and Yun H (2018). “Economic benefits of export diversification in small states”. IMF Working Paper No. 18/86. Washington, DC, USA: IMF. https://doi.org/10.5089/9781484351017.001.

Ministry of Trade and Private Sector Promotion (2015) Etude Diagnostique sur l’Intégration du Commerce au Niger (E.D.I.C) [Diagnostic Trade Integration Study in Niger]. Niger, Nigeria: Ministry of Trade and Private Sector Promotion.

Pitigala N (2018a). “Trade policy options for export diversification of MCNG economies”. Background Paper for Flagship Regional Report. Washington, DC, USA: World Bank.

_____ (2018b). Trade Diagnostics and Policy Assessment of Chad. Washington, DC, USA: World Bank.

Raballand G, et al. (2017). Commerce Informel et Pertes Douanières au Niger [Informal Trade and Customs Losses in Niger]. Mimeo. Washington, DC, USA: World Bank.

Syrquin M and Chenery H (1989). “Three decades of industrialization.” The World Bank Economic Review, 3(2): 145–81. https://doi.org/10.1093/wber/3.2.145.

Torres C and van Seters J (2016). “Overview of trade and barriers to trade in West Africa: Insights in political economy dynamics, with particular focus on agricultural and food trade”. Discussion Paper 195. Maastricht, Netherlands: European Center for Development Policy Management.

United Nations Conference on Trade and Development (UNCTAD) (2013). World Investment Report 2013—Investment and New Industrial Policies. New York, NY, USA and Geneva, Switzerland: United Nations Conference on Trade and Development.

United Nations Office of the High Representative for the Least Developed Countries (UN-OHRLLS) and United Nations Economic Commission for Africa (UNECA) (2019). Improving Transport Connectivity for LLDCs and the Status of Implementation of the Vienna Program of Action in the Africa Region. New York, NY, USA and Addis Ababa, Ethiopia: UN-OHRLLS and UNECA.

World Bank (2017). “Niger: Leveraging export diversification to foster growth”. Report #120306-NE. Washington, DC, USA: World Bank.

_____ (2018). Chad: Leveraging Export Diversification to Foster Growth. Washington, DC, USA: World Bank.

_____ (2019). “An analysis of issues shaping Africa’s economic future”. Africa’s Pulse, No. 19, April 2019. Washington, DC, USA: World Bank. https://doi.org/10.1596/978-1-4648-1421-1.

World Trade Organization (WTO) (2017). WTO Trade Policy Review for Niger. Geneva, Switzerland: WTO

Zafar A (2005). “The impact of the strong euro on the real effective exchange rates of the two francophone African CFA zones”. Working Paper Series 3571. Washington, DC, USA: World Bank.

DOI: https://doi.org/10.24294/jipd.v4i2.1200