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GTAP Resources: Resource Display

GTAP Resource #6591

"A micro-level approach to export diversification in Central Africa: Identifying new opportunities for market expansion"
by Cameron, Martin, Caitlyn Carrico and Jean-Marc Kilolo

The Economic Commission for Africa (ECA) assists Central African governments in the development of evidence-based national strategies. In this regard the Product Space approach provides key insights for industrial policy making highlighting that it is important to consider “what” specifically the economy produces and “how” it produces these goods. However, the Product Space approach has some shortcomings for export strategy development when it comes to the demand-side. The ECA has identified the TRADE-DSM methodology to fill some of the gaps identified in the Product Space approach. The TRADE-DSM methodology is a micro-economic approach which identifies new opportunities for export expansion and diversification at the individual product and country level, through a highly detailed probabilistic model which accounts for operational and demand characteristics of target markets as well as realistic logistics routes and relative costs.
This study implements a combination of the TRADE-DSM method and the Product Space. The combination approach identifies and categorizes mature vs. ‘new’ products at the HS 6-digit level to be marketed to new vs. existing markets. Outputs from the study can serve as inputs for development of national export promotion and development strategies, as well as industrialization plans and can point to the possible implied pathways of structural change that may be required to realize the development of production capabilities to be able to capitalize on ‘new’ potential products and markets (with a focus on intra-Africa trade). Finally, the approach provides a useful and detailed framework for formulation of assumptions that could underpin the evaluation of potential economic returns of implementing identified export and industrialisation strategies, typically evaluated by making use of GTAP-style CGE-based analysis.

Resource Details (Export Citation) GTAP Keywords
Category: 2022 Conference Paper
Status: Not published
By/In: Presented during the 25th Annual Conference on Global Economic Analysis (Virtual Conference)
Date: 2022
Version: 0
Created: Cameron, M. (4/15/2022)
Updated: Cameron, M. (6/10/2022)
Visits: 491
- Infrastructure
- Transportation
- Economic geography
- Multilateral trade negotiations
- Africa (Central)

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