How Integrated Is SADC? Trends in Intra-Regional and Extra-Regional Trade Flows and Policy
Do Southern African Development Community countries trade enough with each other and with the rest of the world? Although its share of world trade has fallen, appropriate benchmarking shows that, controlling for gross domestic product and other cha...
| Main Authors: | , |
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| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110405125648 http://hdl.handle.net/10986/3391 |
| Summary: | Do Southern African Development
Community countries trade enough with each other and with
the rest of the world? Although its share of world trade has
fallen, appropriate benchmarking shows that, controlling for
gross domestic product and other characteristics, Southern
African Development Community countries have experienced an
increase in openness that is comparable to other developing
countries. Once market size and geography are taken into
account, trade between Southern African Development
Community countries is actually high. Southern African
Development Community countries also trade more products
with each other than they do with the rest of the world. In
this sense, and contrary to stylized fears, the Southern
African Development Community region is quite integrated.
Although the Southern African Development Community has
reduced its tariffs, the structure remains complex and could
be lowered on intermediates. Other impediments make it
costly and difficult to move goods, but are at levels that
are comparable with countries at similar levels of
development. Although this may be surprising, there is still
scope for improvement and the disadvantageous geography of
the Southern African Development Community makes it
important for other trade impediments to be reduced. |
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