Export Variety and Imported Intermediate Inputs: Industry-Level Evidence from Africa
Imported intermediate inputs offer access to lower-priced, higher quality, and a wider variety of inputs that can increase the possibility of producing and selling more diversified products in foreign markets. In this paper, we examine this relationship using a novel manufacturing industry-level data across 26 African countries over the 1995-2016 period. We find strong evidence of a positive relationship between imported intermediate inputs and the variety of exported products. Further analyses in the study indicate that imported intermediate inputs positively affect the variety of exported products because they offer lower-priced, and higher-quality/technology embodied inputs. However, the positive effect of imported intermediate inputs on the variety of exported products depend on industry's absorptive capacity, especially when the inputs are sourced from advanced countries. We discuss the implications of our findings.
Contributors from our Network
German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE)
Gideon Ndubuisi is a Research Economist at the German Development Institute/Deutsches Institut für Entwicklungspolitik (DIE). He has a BSc. in Economics from Nnamdi Azikiwe University Awka (Nigeria), MSc. in Economics and Institutions from Philipps-University Marburg (Germany), and PhD in Economics from Maastricht University (Netherlands). Gideon has worked and consulted for different institutions such as the German Institute for Economic Research (Germany), Institute for World Economy (Germany), European Center for Economic Research (Germany), United Nations Industrial Development Organization (Austria), World Bank (USA), UNU-MERIT (Netherland), African Development Bank (Côte d'Ivoire), European Commission (Belgium), and NODAC Consulting (Nigeria). His primary research interests include Global Value Chains and Trade, Institutions, Tax Morale, Environment and Clean Energy Market, and Firm Performance and Structural Transformation.Read more about Gideon Ndubuisi ›
Emmanuel B. Mensah
University of Groningen, Faculty of Economics and Business, and Fellow at Groningen Growth and Development Center.
Emmanuel B Mensah is currently a postdoctoral researcher at the University of Groningen, Faculty of Economics and Business, and Fellow at Groningen Growth and Development Center. He holds a Ph.D. in Economics from UNU-MERIT/Maastricht University, a Master of Science in Development Economics from SOAS, University of London, and a Bachelor of Arts degree in Economics from the Kwame Nkrumah University of Science and Technology, Ghana. Emmanuel previously worked at IMANI Center for Policy and Education as an Economist/Monitoring and Evaluation Specialist. At IMANI, Emmanuel worked on development projects for the World Bank, OSIWA, AfDB, and Agricultural Development Bank. Emmanuel was among the first cohort of fellows at IMANI who pioneered the assessment of the feasibility of political party manifestos in Ghana. Owing to this work, keen interest in critical evaluation of party manifestos has taken root and become an integral part of Ghana's political cycle. His research focuses on development economics, in particular, the economics and measurement of structural change. He also has a strong interest in global value chains, innovation, firm performance, and trade. Emmanuel has consulted for the World Bank on industrialization in Africa.Read more about Emmanuel B. Mensah ›
Oxford Martin School, University of Oxford
I am currently a Postdoctoral Researcher of the Oxford Martin Programme on the Future of Development at the University of Oxford and affiliated with St. Anthony's College of the University. I am a former World Bank Africa fellow, Washington, DC and Associate Researcher at the German Development Institute (Bonn). I also serve as a Coordinator of the Complexity Economics Working Group of the Young Scholars' Initiative, Institute for New Economic Thinking (INET, New York, USA). Before joining Oxford University, I held a Research Economist position at the German Development Institute (DIE) in Germany and worked for reputable institutions such as the World Bank (Washington, DC), United Nations Industrial Development Organisation (UNIDO, Vienna), European Commission (EU-JRC, Belgium), Asian Development Bank, UNU-MERIT (The Netherlands), and Ghana Statistical Service. I received a PhD in Economics from Maastricht University/UNU-MERIT in the Netherlands, an M.A. degree (Economics) from Leuphana University Lüneburg (Germany), and Erasmus Mundus Advanced MSc. degree (Economics) from Staffordshire University (UK), University of Cantabria (Spain), and University of Brasilia (Brazil). I had my undergraduate training in Economics and Management from the University of Cape Coast, Ghana. My research interest focuses broadly on development economics in areas such as (i) economics and measurement of structural transformation, jobs and inclusive growth (ii) global value chains and trade (iii) research in services and industrialization, and (iv) issues at the intersection of technology adoption and productivity in developing countries with particular focus on countries in Africa.Read more about Solomon Owusu ›