Should Africa Industrialize?

Africa should industrialize. Without structural change it cannot sustain recent growth. Economies with more diverse and sophisticated industrial sectors tend to grow faster. But since 1980 Africa has deindustrialized. The paper shows that between 1975 and 2005 the size, diversity and sophistication of industry in Africa have all declined. An industrialization strategy containing two elements is needed. The first is straightforward: refocusing current investment climate reforms on infrastructure, skills, and regional integration. These actions alone will not be sufficient, however. Africa must also learn to compete through strategies to create an export push, develop industrial clusters, and attract task-based production.Africa, industry, industrial policy, growth, sophistication, exports

Analyzing trade competitiveness : a diagnostics approach

Trade has proven to be a powerful engine of growth worldwide. But not all countries have benefited equally. Despite much effort to use trade policy to catalyze exports, many developing countries have failed to achieve successful, sustainable export and economic growth. Even with the benefit of preferential market access, many developing country exporters face a broad and diverse set of constraints that limit their potential to compete in export markets. This paper discusses the concept of"competitiveness"with respect to trade and the various dimensions on which trade competitiveness might be assessed. It argues there is a need for a framework by which trade competitiveness can be assessed in a systematic way. Inspired by the"growth diagnostics"approach, it outlines a possible framework for assessing factors that facilitate or constrain trade competitiveness.Economic Theory&Research,Environmental Economics&Policies,Markets and Market Access,E-Business,Currencies and Exchange Rates

Opportunities for greater Lincolnshire's supply chains: full report

A study of the key sector supply chains across Greater Lincolnshire, and identification of barriers and opportuniteis for growth

Western Australia and the evolving regional order: challenges and opportunities

Executive Summary: 21st century Asia is a powerhouse in the contemporary global economy. In a short period of time it has closed the development gap between the Region and the rest of the world. All indications suggest that this growth performance will continue into the foreseeable future.Australia’s high levels of economic growth over the last decade are directly related to Asia’s ‘economic miracle,’ with Western Australia playing a lead role in Australia’s regional economic engagement. Indeed, the State has accounted for nearly 50 per cent of Australia’s commodity export trade in recent years, concentrated overwhelmingly in Asia. In this sense Australia, and Western Australia in particular, are becoming increasingly ‘hard wired’ into the Region. This presents many opportunities but also challenges.The First Murdoch Commission was established to identify how these opportunities may be pursued and how the challenges may be addressed. The initial impetus was that future prosperity required well-informed strategies and policy settings to optimise potential benefits and sustainable gains.The broad context of the inquiry was the contemporary rise of Asia. This rise is a story of success, yet it is success accompanied by significant challenges. Deepening regional integration is an essential part of the story, with the effect of distributing risks as well as benefits. The ongoing performance of the Region is thus also a question about addressing major problems including rapid urbanisation, resources security, demographic burdens and environmental pressures.This insight underpinned the deliberations of the Commission and its investigation of how economic engagement and the growing interdependency of Western Australia, Australia and the Region can be pursued to enhance mutual benefit and long-term resilience.A distinct feature of the Commission’s investigations was its regional approach. This included the composition of the Commission’s membership, and a series of meetings and consultations with various stakeholder groups and individuals in major regional centres. This approach was taken precisely because Australia’s core interests are now closely intertwined with Asia’s continuing prosperity and stability.The Commission found that there is a strategic choice to be taken by Australia: whether to remain a mere exporter to the Region or to become a more active participant engaging in the Region. The former choice leaves Australia susceptible to the volatilities of a game that it has little capacity to influence. By contrast, the latter offers Australia far greater potential influence, opportunity and long-term benefit for its economic prosperity and wider future. Efforts in this space should not underestimate the major challenges confronting both the Region and the Australian economy, and how regional cooperation can provide ways to address these challenges.Western Australia provided a fertile case for the Commission to examine regional opportunities and challenges from the standpoint of a sub-national unit. There is potential for Western Australia to develop a more prominent role in the Region, and the Commission identified various possibilities at hand.The Commission concluded that greater regional engagement offered many benefits. This includes opportunities for Australia to contribute to addressing some of the major challenges in the Region, especially in areas such as food security and capacity building. Western Australia in particular has a lot to offer and a lot to gain in this respect

The prospects for African urban economies

Cities generally function as sources of economic development and human progress. One of the puzzles about Africa's urbanization is that it has not been accompanied by greater economic dynamism. The paper considers the distinctive development trajectory of African urban economies. It considers the applicability of the argument that cities are drivers of economic growth, and the idea that cities develop more complex, higher-value functions over time. It examines the recent revival of African economies, and asks whether the fashionable idea of enhanced international integration through cross-border collaboration might facilitate greater urban prosperity

Trade Policy and Export Performance in Morocco

Morocco’s trade policy is at a cross-roads. Historically, the country has had a very restrictive import regime that generated substantial transfers to domestic producers. In terms of the simple average of most-favored nation tariffs, Morocco is one of the ten most highly protected markets in the world. Yet, with the signing of the Euro-Med Agreement with the European Union and its implementation since 2000, a decision for the gradual opening of the domestic market through preferential trade liberalization was taken. This choice was subsequently reaffirmed through the conclusion of further free trade agreements with the United States and Turkey. The resulting shift in trade policy paradigms promises to create new opportunities for export-led economic growth and employment generation, while requiring adjustment of domestic producers to the new, more competitive economic environment and additional policy reforms to complement the market opening strategy.Trade, tariffs, services, logistics, export diversification, regional integration, world markets

On the road to prosperity? The economic geography of China's national expressway network

Over the past two decades, China has embarked on an ambitious program of expressway network expansion. By facilitating market integration, this program aims both to promote efficiency at the national level and to contribute to the catch-up of lagging inland regions with prosperous Eastern ones. This paper evaluates the aggregate and spatial economic impacts of China's newly constructed National Expressway Network, focussing, in particular, on its short-run impacts. To achieve this aim, the authors adopt a counterfactual approach based on the estimation and simulation of a structural "new economic geography" model. Overall, they find that aggregate Chinese real income was approximately 6 percent higher than it would have been in 2007 had the expressway network not been built. Although there is considerable heterogeneity in the results, the authors do not find evidence of a significant reduction in disparities across prefectural level regions or of a reduction in urban-rural disparities. If anything, the expressway network appears to have reinforced existing patterns of spatial inequality, although, over time, these will likely be reduced by enhanced migration

Predicting Long-Term Effects of Infrastructure Development Projects in Continental South East Asia: IDE Geographical Simulation Model

It is important to develop a rigorous economic geography model for predicting changes in the location of population and industries across regions in the process of economic integration. The IDE Geographical Simulation Model (IDE-GSM) has been developed for two major objectives: (1) to determine the dynamics of locations of population and industries in East Asia in the long term, and (2) to analyze the impact of specific infrastructure projects on the regional economy at sub-national levels. The basic structure of the IDE-GSM is introduced in this article and accompanied with results of test analyses on the effects of the East West Economic Corridor on regions in Continental South East Asia. Results indicate that border costs appear to play a big role in the location choice of populations and industries, often a more important role than physical infrastructures themselves.Economic geography; Infrastructure development; Custom clearance

While Doha Sleeps: Securing Economic Growth through Trade Facilitation

Improving the international trading system does not require new, comprehensive multilateral agreements. Countries can derive large gains from the trading system by engaging in reforms often referred to as trade facilitation. In broad terms, trade facilitation includes reforms aimed at improving the chain of administrative and physical procedures involved in the transport of goods and services across international borders. Countries with inadequate trade infrastructure, burdensome administrative processes, or limited competition in trade logistics services are less capable of benefiting from the opportunities of expanding global trade. Companies interested in investing, buying, or selling in local markets are less likely to bother if there are too many frictions related to document processing or cargo inspection at customs, antiquated port facilities, logistics bottlenecks, or limited reliability of freight or trade-financing services. According to recent studies from the World Bank and other international economic institutions, trade facilitation reforms could do more to increase global trade flows than further reductions in tariff rates. For many developing countries -- particularly those that receive preferential tariff treatment from rich countries -- reducing transportation and logistics-related costs through trade facilitation reforms would be much more beneficial than further tariff cuts. But trade facilitation does not only offer promise to developing countries. All countries can benefit by removing sources of friction in their supply chains. The post-9/11 focus on minimizing the risk of terrorists exploiting porous international supply chains to sneak weapons of mass destruction into U.S. cities -- obviously a vital objective -- could hamper the capacity of Americanbased companies to attract investment and compete for markets. Likewise, U.S. prohibitions against foreign competition in transportation services and the political antipathy toward foreign investment in U.S. port operations raise the costs of doing business and increase the scope for trade facilitation in the United States

On the road to prosperity ? The economic geography of China's national expressway network

Over the past two decades, China has embarked on an ambitious program of expressway network expansion. By facilitating market integration, this program aims both to promote efficiency at the national level and to contribute to the catch-up of lagging inland regions with prosperous Eastern ones. This paper evaluates the aggregate and spatial economic impacts of China's newly constructed National Expressway Network, focussing, in particular, on its short-run impacts. To achieve this aim, the authors adopt a counterfactual approach based on the estimation and simulation of a structural"new economic geography"model. Overall, they find that aggregate Chinese real income was approximately 6 percent higher than it would have been in 2007 had the expressway network not been built. Although there is considerable heterogeneity in the results, the authors do not find evidence of a significant reduction in disparities across prefectural level regions or of a reduction in urban-rural disparities. If anything, the expressway network appears to have reinforced existing patterns of spatial inequality, although, over time, these will likely be reduced by enhanced migration.Transport Economics Policy&Planning,Economic Theory&Research,Labor Policies,Roads&Highways,Regional Economic Development