Contents of the volume

2020, Volume 73 - Issue 2

ISSN: 2499-8265
RSS feed citation: at RePEc
Publication date: 06 May 2020

THE PERSISTING US TRADE DEFICIT. IS PROTECTIONISM THE RIGHT ANSWER?

Riccardo Fiorentini

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GLOBALISATION AND ECONOMIC GROWTH: A PANEL DATA APPROACH

Cândida Ferreira

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TRADE RELATION BETWEEN INDIA AND OTHER BRICS COUNTRIES: A MULTIDIMENSIONAL APPROACH USING GRAVITY MODEL AND GRANGER CAUSALITY

Narayanasamy Kubendran

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STRATEGIC TRADE POLICY WITH ASYMMETRIC BARGAINING AGENDA

Luciano Fanti, Domenico Buccella

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TRADE LINKAGES AND BUSINESS CYCLE CO-MOVEMENT: ANALYSIS OF TRADE BETWEEN AFRICAN ECONOMIES AND THEIR MAIN TRADE PARTNERS

Lumengo Bonga-Bonga, Emilie Kinfack

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TECHNICAL EFFICIENCY AND ECONOMIC GROWTH IN THE SADC REGION

Mduduzi Biyase, Mokgadi Maleka, Abelwe Maluleka, Talent Zwane

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Genoa Chamber of Commerce
Economia Internazionale / International Economics

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Corresponding author

Lumengo BONGA-BONGA, Department of Economics and Econometrics, University of Johannesburg, South Africa

Co-authors

Emilie KINFACK, Department of Economics and Econometrics University of Johannesburg South Africa

Trade Linkages and Business Cycle Co-Movement: Analysis of Trade between African Economies and their Main Trade Partners

Pages

275-306

Abstract

This paper seeks to uncover what drives the nature of the link between trade linkages and business cycle synchronization by empirically assessing this link between African economies and their main trading partners, namely China, Europe and the United States (US). Contrary to past papers, this paper determines endogenously the magnitude of trade linkage by assessing how trade shocks are transmitted between Africa and its main trading partners in the periods before and after the 1990s. Moreover, the paper assesses the extent of business cycle synchronization between Africa and these trading partners during the same periods. The global vector autoregressive (GVAR) model and the Instantaneous Quasi Correlation (IQC) method are used to this end. The results of the empirical analysis show that not only the nature of trade but also the mode of trade financing or trade settlement should matter in determining the relationship between trade linkages and business cycle synchronisation.

JEL classification

C32, C51, F44

Keywords

Trade Linkages, GVAR Model, Business Cycle Synchronization, Africa

Index

  1. Introduction
  2. Africa's relationship with its main trading partners
  3. Methodology and data
  4. Results and interpretation
  5. Conclusion 

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