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Journal of Economic Integration 2012 September;27(3) :410-436.
DOI: https://doi.org/10.11130/jei.2012.27.3.410
International Demand Spillovers in South-South Exports: Application to Sub-Saharan Africa and Developing Asia
Thi Anh-Dao Tran
Diadié Diaw and 
Arsène Rieber 
CREAM, University of Rouen
Corresponding Author: Thi Anh-Dao Tran ,Tel: +84(0)437346656, Fax: +33(0)232769663, Email: thianh-dao.tran@univ-rouen.fr
Copyright ©2012 Journal of Economic Integration
ABSTRACT
This paper aims at analyzing how export performance of developing countries differs across destinations. With application to Sub-Saharan Africa and Asia, we first employ a gravity equation to break down each region’s export performance, separating the contribution of foreign market access from internal supply capacity. Then, we identify the key determinants of countries’ export performance, both theoretically and empirically. Our contribution is to introduce demand spillovers that help market access to improve supply conditions. Regression reveals a positive interaction between the two components, with a higher elasticity of exports with respect to market access in the particular case of South-South trade flows.

JEL Classification
F14: Empirical Studies of Trade
F15: Economic Integration
O11: Macroeconomic Analyses of Economic Development
O57: Comparative Studies of Countries
Keywords: Internal Supply Capacity | Foreign Market Access | Demand Spillovers | South- South Trade | Sub-Saharan Africa | Developing Asia
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