Multilateral Trade Resistance, International Competitiveness and African International Exports: A Network Perspective
Getachew Magnar Kitila & Fuzhong Chen
Understanding and interpreting trade flows between trading partners/countries requires knowing whether countries are hubs or peripherals in the global trade network. These network statistics have been included in the gravity model in recent empirical works in international trade, to capture the notion of multilateral trade resistance While the network statistics logically captures the third-country effect, the literature, especially in Africa, has mainly focused on bilateral effects between trading partners, neglecting the multilateral nature of trade. Employing an Augmented gravity model, we estimated the effect of multilateral trade resistance/competition effect (Captured by the Clustering coefficient) and international competitiveness (captured by out-degree centrality) and importer openness (captured by in-degree centrality) on African international trade and found that these network statistics have robust and significant, but contrasting effects on African international trade flows. While an increase in degree variables increases African international trade flows on average, a higher clustering coefficient is found to have a negative impact on African export- which is consistent with the theory and our expectation. It is therefore advisable that the attention of African country exporters and policymakers should be geared towards encouraging the degree centrality and discouraging strong connection of African exporters within themselves to boost African international exports.
Keywords: Gravity, Networks, degree centrality, clustering, Multilateral Trade Resistance, Exports, Africa.
|Title:||Multilateral Trade Resistance, International Competitiveness and African International Exports: A Network Perspective|
|Author:||Getachew Magnar Kitila & Fuzhong Chen|
|Journal Name:||International Journal of Science and Business|
|ISSN:||ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)|
|Date of Publication:||06/11/2021|
|Paper Type:||Research paper|
Cite This Article:
Getachew Magnar Kitila & Fuzhong Chen (2021). Multilateral Trade Resistance, International Competitiveness and African International Exports: A Network Perspective. International Journal of Science and Business, 5(10), 111-126. doi: https://doi.org/10.5281/zenodo.5650603
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About Author (s)
Getachew Magnar Kitila (corresponding author), School of International Trade and Economics, University of International Business and Economics, Beijing, 100029, China and Department of Economics, Wollega University, Ethiopia.
Fuzhong Chen, School of International Trade and Economics, University of International Business and Economics, Beijing, 100029, China.