On the Complementarity of Regional and Global Trade

Publication:
On the Complementarity of Regional and Global Trade

dc.contributor.author	Coulibaly, Souleymane
dc.date.accessioned	2012-06-26T15:40:30Z
dc.date.available	2012-06-26T15:40:30Z
dc.date.issued	2009
dc.description.abstract	Sourcing intermediate goods efficiently is essential for a country's production capacity. Countries located in a neighborhood providing a wide range of intermediate goods cheaply available can take advantage of scale economies to reduce their production costs and improve their global competitiveness. Many empirical works have documented the sharp increase in intra-industry trade and particularly trade in intermediate goods within developed neighborhoods such as the EU, North America and Northeast Asia. But what about developing neighborhoods? This paper uses COMTRADE aggregate exports of capital goods, intermediate goods, consumer goods and raw materials for 2002-06 to evaluate how a country's import of intermediate goods from its neighbors impacts its global export performance. For Sub-Saharan African countries particularly, there is a strong positive correlation between countries previous regional import of intermediate goods and their current exports, indicating that developing neighborhoods are also experiencing such complementarity between regional and global trade, the relation being stronger beyond a threshold of global competitiveness. These results call for a two-pronged policy action encompassing regional and global integration and putting a sub-set of Sub-Saharan countries close to that global competitiveness threshold at the heart of a neighborhood growth strategy.	en
dc.identifier.doi	10.1596/9181
dc.identifier.uri	https://hdl.handle.net/10986/9181
dc.language	English
dc.publisher	Washington, DC: World Bank
dc.rights	CC BY 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	http://creativecommons.org/licenses/by/3.0/igo/
dc.subject	World Development Report 2009
dc.title	On the Complementarity of Regional and Global Trade	en
dspace.entity.type	Publication
okr.crosscuttingsolutionarea	Fragility, Conflict, and Violence
okr.date.doiregistration	2025-05-05T12:41:37.686465Z
okr.globalpractice	Macroeconomics and Fiscal Management
okr.globalpractice	Social, Urban, Rural and Resilience
okr.globalpractice	Transport and ICT
okr.language.supported	en
okr.region.administrative	Africa
okr.relation.associatedurl	https://openknowledge.worldbank.org/handle/10986/5991
okr.topic	Communities and Human Settlements
okr.topic	Conflict and Development
okr.topic	Macroeconomics and Economic Growth
okr.topic	Private Sector
okr.topic	Public Sector
okr.topic	Trade
okr.topic	Transport
relation.isAuthorOfPublication	df744946-61fa-55c4-9092-5ea497fa78c1
relation.isAuthorOfPublication.latestForDiscovery	df744946-61fa-55c4-9092-5ea497fa78c1