How important is a regional free trade area for Southern Africa?: Potential impacts and structural constraints

We develop a detailed trade analysis to assess the potential welfare impacts of a free trade agreement (FTA) on the agricultural sector of southern African countries and to determine opportunities and challenges faced by the region as a consequence of the agreement. Our approach combines an in-depth...

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Autores principales: Nin-Pratt, Alejandro, Diao, Xinshen, Bahta, Yonas
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2009
Materias:
Acceso en línea:https://hdl.handle.net/10568/161882
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author Nin-Pratt, Alejandro
Diao, Xinshen
Bahta, Yonas
author_browse Bahta, Yonas
Diao, Xinshen
Nin-Pratt, Alejandro
author_facet Nin-Pratt, Alejandro
Diao, Xinshen
Bahta, Yonas
author_sort Nin-Pratt, Alejandro
collection Repository of Agricultural Research Outputs (CGSpace)
description We develop a detailed trade analysis to assess the potential welfare impacts of a free trade agreement (FTA) on the agricultural sector of southern African countries and to determine opportunities and challenges faced by the region as a consequence of the agreement. Our approach combines an in-depth look at the current trading patterns of southern African countries with the application of a partial equilibrium analysis that uses bilateral trade data at the four-digit standard international trade classification (SITC) level for 193 agricultural industries in 14 southern African countries. Low diversification of agricultural exports in most southern African countries seems to be a major constraint for promoting regional trade. In most countries, overall welfare effects of an FTA would be positive but small. Inefficient agricultural producers with a regional comparative advantage for agriculture would benefit from trade creation with the rest of the world. Welfare results for regional importers would be negative because of increased imports from inefficient regional producers. These results suggest that the region should be looking at regional policies and interventions beyond trade arrangements, such as those targeting investment, agricultural productivity, and diversification, to enhance benefits of regional trade liberalization.
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spelling CGSpace1618822025-11-06T06:21:43Z How important is a regional free trade area for Southern Africa?: Potential impacts and structural constraints Nin-Pratt, Alejandro Diao, Xinshen Bahta, Yonas trade agreements trade development policies We develop a detailed trade analysis to assess the potential welfare impacts of a free trade agreement (FTA) on the agricultural sector of southern African countries and to determine opportunities and challenges faced by the region as a consequence of the agreement. Our approach combines an in-depth look at the current trading patterns of southern African countries with the application of a partial equilibrium analysis that uses bilateral trade data at the four-digit standard international trade classification (SITC) level for 193 agricultural industries in 14 southern African countries. Low diversification of agricultural exports in most southern African countries seems to be a major constraint for promoting regional trade. In most countries, overall welfare effects of an FTA would be positive but small. Inefficient agricultural producers with a regional comparative advantage for agriculture would benefit from trade creation with the rest of the world. Welfare results for regional importers would be negative because of increased imports from inefficient regional producers. These results suggest that the region should be looking at regional policies and interventions beyond trade arrangements, such as those targeting investment, agricultural productivity, and diversification, to enhance benefits of regional trade liberalization. 2009 2024-11-21T09:59:06Z 2024-11-21T09:59:06Z Working Paper https://hdl.handle.net/10568/161882 en Open Access application/pdf International Food Policy Research Institute Nin-Pratt, Alejandro; Diao, Xinshen; Bahta, Yonas. 2009. How important is a regional free trade area for Southern Africa? IFPRI Discussion Paper 888. https://hdl.handle.net/10568/161882
spellingShingle trade agreements
trade
development policies
Nin-Pratt, Alejandro
Diao, Xinshen
Bahta, Yonas
How important is a regional free trade area for Southern Africa?: Potential impacts and structural constraints
title How important is a regional free trade area for Southern Africa?: Potential impacts and structural constraints
title_full How important is a regional free trade area for Southern Africa?: Potential impacts and structural constraints
title_fullStr How important is a regional free trade area for Southern Africa?: Potential impacts and structural constraints
title_full_unstemmed How important is a regional free trade area for Southern Africa?: Potential impacts and structural constraints
title_short How important is a regional free trade area for Southern Africa?: Potential impacts and structural constraints
title_sort how important is a regional free trade area for southern africa potential impacts and structural constraints
topic trade agreements
trade
development policies
url https://hdl.handle.net/10568/161882
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