Multilateral Trade Resistance, International Competitiveness and African International Exports: A Network Perspective Getachew Magnar Kitila & Fuzhong Chen

Multilateral Trade Resistance, International Competitiveness and African International Exports: A Network Perspective

Author (s)

Getachew Magnar Kitila & Fuzhong Chen

Abstract

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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.

 

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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
Website:ijsab.com
ISSN:ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)
DOI:https://doi.org/10.5281/zenodo.5650603
Media:Online
Volume:5
Issue:10
Acceptance Date:5/11/2021
Date of Publication:06/11/2021
PDF URL:https://ijsab.com/wp-content/uploads/830.pdf
Free download:Available
Page:111-126
First Page:111
Last Page:126
Paper Type:Research paper
Current Status:Published

 

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

Retrieved from https://ijsab.com/wp-content/uploads/830.pdf

 

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.

 

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DOI: https://doi.org/10.5281/zenodo.5650603

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