Is Africa Integrated in the Global Economy? Arvind Subramanian; Natalia T. Tamirisa

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Arvind Subramanian ; Natalia T. Tamirisa
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IMF Staff Papers
Business, international; Business; Banking, finance and accounting industries
The popular impression that Africa has not integrated into world trade, as suggested by the evolution in simple indicators, has been called into question recently by more formal analysis. This paper refines and generalizes this analysis and lends support to the popular view of disintegration, but only for countries in Francophone Africa. These countries are currently underexploiting their trading opportunities and have witnessed disintegration over time, a trend that is most pronounced in their trade with technologically advanced countries. There is some evidence, on the other hand, that countries in Anglophone Africa are reversing the trend of disintegration, particularly in their trade with advanced countries. [JEL C1, F1, 04]
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