The Determinants of Trade between World Emerging and African Emerging Economies
Abdulkadir Wahab, Zeynep Kaplan

This study investigates the key determinants of trade between African emerging economies and world major emerging economies by using the gravity model of international trade. The latter includes BRICS countries plus Turkey, Mexico, and the Philippines while the earlier includes 15 African economies. The main objective is to identify the core macroeconomic and socio-cultural factors of bilateral trade between both sides. Importer and exporter-fixed effect is used in order to efficiently test the impact of many dummy variables. The results illustrate that the core form of the gravity model, GDP, and distance, explains the bilateral trade. Minerals production, rather than petroleum production, affects the level of bilateral trade. Moreover, sharing a common religion and a common language have a positive impact whereas ODA size, economic freedom, and overall trade volume are not statistically significant. Furthermore, more corrupted African emerging economies have higher bilateral trade with the world major emerging economies than less corrupted African economies.

Full Text: PDF     DOI: 10.15640/jibe.v5n2a5