Working Paper: CEPR ID: DP3807
Authors: Stephen Redding; Anthony J. Venables
Abstract: This Paper investigates the determinants of countries? export performance looking in particular at the role of international product market linkages. We begin with a novel decomposition of the growth in countries? exports into the contribution from increases in external demand and from improved internal supply-side conditions. Building on the results of this decomposition, we move on to an econometric analysis of the determinants of export performance. Results include the finding that poor external geography, poor internal geography, and poor institutional quality contribute in approximately equal measure to explaining Sub-Saharan Africa?s poor export performance.
Keywords: Economic Development; Economic Geography; International Trade
JEL Codes: F12; F14; O10
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| poor external geography (R12) | poor export performance (F14) |
| poor internal geography (R12) | poor export performance (F14) |
| poor institutional quality (O17) | poor export performance (F14) |
| foreign market access (F23) | export growth (F43) |
| internal supply capacity (D25) | export performance (F17) |
| proximity to rapidly growing export markets (F10) | export performance (F17) |
| access to ports (L92) | internal supply capacity (D25) |
| external geography + internal geography + institutional quality (R12) | export performance (F17) |