Measuring Trade Integration in Africa

Abstract

This paper reviews the literature on the measurement and characterization of trade integration in Africa. We offer the complete evaluation of available indicators and methodologies. The indicators include those that have recently emerged from network analysis like indicators of trade in value-added commodities. It is concluded that Africa is characterized by weak trade integration, particularly with the rest ofthe world. This is naturally explained by high trading costs that are evaluated by tariffs, non-tariff measures, and other trade costs, such as those related to border and documentary compliance. The region’s small number of trading partners and low product diversification are also noticeable. However, the use of more refined indicators shows that intra-African trade is relatively high when compared with trade with other continents, contrary to what can be concluded from some simple trade share indicators.