Given that agriculture is the primary export commodity in Africa, this chapter will also focus on the results of trade in agricultural products on the continent. But just as in exports, the continent remains a marginal player in world imports, which fell 8.1%. The Trade Specialization Index (TSI) by specific products in Africa (Table 7) shows the sluggish performance of the continent and the country in the global market.
Sadly, although agriculture is the mainstay of Africa's economy, the continent has performed poorly in world markets.
Trade similarity and complementary
The continent recorded a negative trade balance not only in labour- and resource-intensive manufactures, but also in low-skilled and technology-intensive manufactures (Table 7). It is worth repeating that Africa needs to increase production and the level of industrialization to process or manufacture most of the products it consumes. The continent has abundant factor endowments as postulated by the Heckscher-Ohlin model [3, 4] to be written for industrial and commercial purposes.
Central Africa recorded the lowest index, followed by the West and East African regions, reflecting a poor match between the relative composition of trade for the period of 1995 and 2013 (Table 8).
Product concentration and diversification
For example, evidence from the ITC [19] shows that Algeria's oil exports accounted for 95% of the country's total exports in 2015. Angola's oil exports accounted for 97% of the country's total exports, while pearls, precious stones, metals and coins (code 71) accounted for 2% of the total exports in 2015. Nigeria's oil exports were accounting for 94.5% of the country's total exports, and the value of exported products fell by -44% in 2015.
Libya's oil exports accounted for 94.3% of the country's total exports, and the value of the goods shipped was reduced by -50% in 2015.
Intra- and extra-African trade
Similarly, although the proportion of mineral fuels (code 27) in total African commodity exports fell from 57% in 2010 to 42% in 2015 (table 3), it revealed that the continent's exports not diversified. In the same direction, the results of this study also show that IIT exists more in developed countries than in developing countries. On the other hand, ECCAS has the worst results in both intra-regional imports and exports in the region.
Despite progress in regional integration, barriers to intra-African trade remain a challenge on the continent.
Constraints to trade
Market access
African products are banned in part because of the poor awareness and understanding of producers and exporters on the continent of applicable global standards and best practices. Since the production and exports of these countries exceed those of African countries (see Tables 1 and 11), large-scale importation suggests that it has hampered domestic producers and exporters on the continent as they cannot compete favorably with foreign competitors in terms of pertains to price, quality and quantity. Commodity price fluctuations in world markets: Price volatility characterizes most agricultural commodity markets.
The inability of African countries to compete favorably in world markets is partially reflected in their negative trade balance and declining proportion of global merchandise trade.
Author details
State Power, Agrarian Policy and Farmer Welfare: Politics of Agricultural Marketing and Commodity Boards in Nigeria. International Trade: The Position of Africa in Global Merchandise Trade http://dx.doi.org/10.5772/intechopen.68897 89.
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Introductory Chapter: Economics, Natural Resources and Sustainable Development
- Introduction
- The nexus of economics and sustainable development
- Natural resources, economic growth, and sustainable development
- Conclusion: governance and sustainable development
The essence of economics is the well-being of people, which is formulated as the maximization of the social welfare function (SWF). Therefore, the most critical factor in achieving sustainable development lies in the proper management of the complex interactions between the various forces within the economic, political and social environment. Through the mix of productive activities from different sectors of the economy, the transformation of natural resources into usable goods and services occurs to push the overall economy to achieve sustainable growth that forms the basis for sustainable development.
A rational response to incentives leads to an increase in the level of activity of sectors of the economy in a self-reinforcing manner.
Self-Organizing Maps to Analyze Value Creation in Mergers and Acquisitions in the Telecommunications
- Self-Organizing Maps
- Data set
- Results
- Conclusions
Self-organizing map to analyze value creation in mergers and acquisitions in the telecommunications sector http://dx.doi.org/10.5772/intechopen.68757 7. Telecommunications sector operators only (SIC codes and 4899) as of the entry into force of the M&A are included. Self-organizing maps to analyze value creation in mergers and acquisitions in the telecommunications sector http://dx.doi.org/10.5772/intechopen.68757 9.
Self-organizing maps to analyze value creation in mergers and acquisitions in the telecommunications sector http://dx.doi.org/10.5772/intechopen.68757 11. The results have relevant methodological implications in the discussion of value creation time analysis (short-term versus long-term analysis). Due to the temporal evolution of the CTAR index, it was decided to perform a cluster analysis of neurons in the SOM to further clarify the above conclusions.
Self-organizing maps for analyzing M&A value creation in the telecommunications M&A sector, which, as we saw, is a relatively young field of research. The chapter discussed the role of acquirer size, which is not a factor that has been extensively studied in acquirer value creation [30] and internationalization [40].
Self-organizing maps to analyze value creation in mergers and acquisitions in the telecommunications sector http://dx.doi.org/10.5772/intechopen.68757 15. Self-organizing maps to analyze value creation in mergers and acquisitions in the telecommunications sector http ://dx .doi.org/10.5772/intechopen.68757 17.
Do Foreign Investors Crowd Out or Crowd In Domestic Investment? A Panel Analysis for OECD Countries
- Literature review
- Data and methodology
- Data
- Methodology
- Empirical results
- Conclusion
FDI can affect the structure of the capital stock in the local market in two ways. For example, the domestic capital stock can be structured by foreign investment at the expense of domestic investment in the local market. Since FDI's crowding-out effect on domestic investment stems from the financing choice of foreign capital in the local market, the main features of financial components must also be taken into account.
A recent debate on the role of FDI in domestic investment remains a controversial and outstanding issue in the FDI literature. Also contributed to the literature by arguing that FDI can crowd out domestic investment by creating national sovereignty in the host market. 4-10] all agree that foreign investment can cause crowding-out effects on domestic investment through competition in the product market, the financial market, or through the use of a superior technology.
Furthermore, some researchers found neutral effects of FDI on domestic investment if it leads to a one-for-one increase in total investment in the host market. 6, 13, 16] have supported the view that foreign investment will increase capital formation one-to-one in the host country. Domestic investment can crowd out or crowd out foreign investment depending on the choice of foreign investors to finance new investments in the foreign market.
In other words, foreign investors are not displacing or displacing domestic investment by the other two financial components (equity investment or reinvested earnings) of total FDI. However, their transfers (internal debt inflows) from the parent company to the bank deposits in the host market increase lendable funds from domestic banks for all investors.
Analysis of ‘Dutch Disease Effects’ on Asian Economies
- Theoretical framework of Dutch Disease
- Natural‐resource abundance and the Dutch Disease
- Foreign aids and the Dutch Disease
- Emigrant remittances and the Dutch Disease
- Key findings and recommendation
On the global landscape, the effects of Dutch Disease in resource-rich economies have been identified by most evidence. This study aims to provide evidence on the applicability of Dutch disease theory in assessing the impact of foreign aid. Through their analysis, they confirmed the existence of Dutch disease effects of immigrant remittances.
Examining the case of Cape Verde, they argued that the Dutch Disease effects of remit‐. In short, the Dutch Disease does not seem to fit the recent Asian economies. The next question is what made the difference in the applicability of the Dutch Disease from the first phase to the second phase.
We speculate that improvements in institutional quality and progress in policy efforts could offset the negative economic impacts of Dutch disease and even increase the effect of capital accumulation in recent Asian economies. We therefore speculate that CLMV economies did not suffer from the Dutch disease and even enjoyed the effect of capital accumulation. Then the next question arises, what is the difference in Dutch disease effects of remittances received between Nepal and Bangladesh.
This contrast in the policy positions between Nepal and Bangladesh may account for the difference in the Dutch Disease effects of emigrant transmission. To summarize, the empirical outcomes identified the existence of the Dutch Disease in Nepal, but not in Bangladesh.
Ricardo’s Law of Comparative Advantage and the Law of Association: A Subjective Analysis
- The traditional Ricardo’ s law of comparative advantage
- Production maximization analysis
- Subjective analysis
- Dynamics
- The effect of specialisation
- Instabilities
- Summary and conclusions
The erroneous conclusions are a direct result of the absence of any subjective utility analysis in the derivation of LA. Similarly, the maximum number of units of the same goods (A and B) that the other producer produces are A2 and B2, respectively. Any improvement in its status is thus achieved by advancing in a direction perpendicular to the production frontier.
In the limit where the units of the goods are arbitrarily small, the continuum limit can be used, in which case Eq. However, in the absence of a utility function, it makes no sense to apply this criterion to the preference ranking matrix. In the scenario on the left, the preferred ranking of the first producer rises to 40 and that of the second to 68.
It has been found that if the second producer wants to increase its preference ranking even further to 70, it must be due to a significant reduction in the preference ranking of the first producer (to 28), albeit still higher than the pre-trade maximum ranking (27) . The first producer's preference ranking has been improved (from 28 in the right panel of figure 1 to 30), and even the second producer wins for this production scheme (1 unit of A and 8 units of B), does not use up all of his temporary resources (since lt; 1). In the left scenario there is only one option to act, and in any case there is no clear motivation for the second producer to produce more units of B.
The dashed and the solid curves represent the production limits of the first and second producers, which in the absence of trade are the maximum attainable preference ranks of 16 and 25, respectively. In Section 6, we examine the effect of specialization, which is also absent in the traditional analysis of LA.
