Regional Growth Spillovers in Sub-Saharan Africa

Author/Editor:

Francisco Arizala ; Matthieu Bellon ; Margaux MacDonald

Publication Date:

July 24, 2019

Electronic Access:

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

This paper documents the steady increase in intraregional trade in sub-Saharan Africa since 1980, links this rise to important growth spillovers in the region, and identifies the main source countries and those most vulnerable to the economic conditions of others. Estimates show that in the short run, positive idiosyncratic shocks to regional trading partners’ growth significantly increase growth in the average sub-Saharan African country, while in the long-run the annual impact of growth in regional trading partner’s is smaller in magnitude. Policy implications including the need to support further continent-wide integration and the associated growth spillovers are discussed. Actions policymakers in sub-Saharan Africa can take to capture the benefits of these spillovers, while limiting exposure to the associated risks, are also proposed.

Series:

Working Paper No. 19/160

Subject:

English

Publication Date:

July 24, 2019

ISBN/ISSN:

9781498320498/1018-5941

Stock No:

WPIEA2019160

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

29

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