B andi, Cla a; Kamin, Ka in; Thiele, Raine
A icle — Published Ve sion
A ica’s egional and global in eg a ion: in oduc ion o he
special issue
Re iew o Wo ld Economics
P o ided in Coope a ion wi h:
Kiel Ins i u e o he Wo ld Economy – Leibniz Cen e o Resea ch on Global Economic Challenges
Sugges ed Ci a ion: B andi, Cla a; Kamin, Ka in; Thiele, Raine (2025) : A ica’s egional and global
in eg a ion: in oduc ion o he special issue, Re iew o Wo ld Economics, ISSN 1610-2886, Sp inge
Na u e, Be lin, Vol. 161, Iss. 1, pp. 1-5,
h ps://doi.o g/10.1007/s10290-024-00577-x
This Ve sion is a ailable a :
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EDITORIAL
Re iew o Wo ld Economics (2025) 161:1–5
h ps://doi.o g/10.1007/s10290-024-00577-x
A ica is a a c ucial c oss oads in i s jou ney owa d deepe egional and global
economic in eg a ion. While emaining he mos isola ed egion om he global
economy, A ica has ealized con inuous p og ess owa ds a close and mo e ac i e
in eg a ion, bo h om wi hin and beyond he con inen ’s bo de s.
The ecen ly in oduced A ican Con inen al F ee T ade A ea (A CFTA) is a co -
ne s one o A ica’s egional in eg a ion agenda, aiming o be he wo ld’s la ges ee
ade a ea by popula ion. The A CFTA is essen ial because i p o ides a amewo k o
unlock A ica’s immense economic po en ial by add essing he con inen ’s agmen-
a ion. I has he po en ial o boos A ica’s income, d i en by inc eased ade, o -
eign di ec in es men (FDI) and indus ializa ion. Meanwhile, close in e na ional
ies beyond A ica, including China’s in as uc u e in es men s and he Eu opean
Union’s ade ag eemen s, ha e o e ed new pa hways o global in eg a ion, includ-
ing ia pa icipa ion in global alue chains (GVCs).
Regional in eg a ion is essen ial o A ica’s economic de elopmen because i
add esses he s uc u al challenges ha agmen he con inen ’s economies and limi
hei global compe i i eness. A ica is cha ac e ized by small, disconnec ed ma ke s
wi h signi ican ade ba ie s. In as uc u e de ici s, weak ins i u ional amewo ks,
and une en p oduc i i y con inue o hinde A ica’s abili y o le e age hese oppo -
uni ies o inclusi e and sus ainable g ow h.
Regional in eg a ion, by educing a i s, ha monizing egula ions, and imp o ing
connec i i y, helps c ea e la ge , mo e e icien ma ke s ha a e a ac i e o in es -
men and capable o suppo ing mo e di e si ied economic ac i i y. T ade acili a ion
measu es, such as imp o ing po e iciency and educing non- a i ba ie s, a e i al
o unlocking A ica’s expo po en ial.
Accep ed: 21 No embe 2024 / Published online: 7 Ap il 2025
© The Au ho (s) 2024
A ica’s egional and global in eg a ion: in oduc ion o he
special issue
Cla aB andi1· Ka inKamin2· Raine Thiele2
Cla a B andi
[email p o ec ed]
1 Ge man Ins i u e o De elopmen and Sus ainabili y, Bonn, Ge many
2 Kiel Ins i u e o he Wo ld Economy, Kiel, Ge many
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C. B andi e al.
The d i e s and e ec s o hese de elopmen s emain insu icien ly unde s ood. To
add ess he emaining esea ch gaps he Ge man Ins i u e o De elopmen and Sus-
ainabili y (IDOS) and he Kiel Ins i u e o he Wo ld Economy (I W) join ly o ga-
nized he con e ence “A ica’s egional and global in eg a ion – Lessons om he
pas and implica ions o he u u e”, aking place a IDOS in Bonn on 17/18 No em-
be 2022 wi h inancial suppo om he Fede al Minis y o Economic Coope a ion
and De elopmen (BMZ). This con e ence o med he basis o his special issue.
Selec ed pape s om he con e ence and addi ional con ibu ions a e combined in a
collec ion o ele en pape s on A ica’s egional and global economic in eg a ion o
shed ligh on A ica’s p omise and pi alls in p omo ing economic in eg a ion and
de elopmen .
The a icles in he special issue can be clus e ed in o h ee main sub hemes based
on hei ocus:
1. GVCs and Regional In eg a ion: A icles ocusing on he ole o GVCs, in a-
s uc u e, and ade ag eemen s in enhancing economic de elopmen .
2. T ade Policy, T ade and P oduc i i y: A icles ha explo e he impac o ade
in eg a ion, ade policies and e iciency measu es on expo di e si ica ion and
o e all p oduc i i y g ow h.
3. FDI and Labo Ma ke Ou comes: A icles ha analyze he implica ions o
o eign di ec in es men and mul ina ional co po a ions on local employmen .
Fi e pape s ela e o he i s sub heme o GVCs and egional in eg a ion. Amen-
dolagine e al. examine he impac o Chinese lending on A ican coun ies’ pa -
icipa ion in GVCs. Employing da a om 37 A ican coun ies be ween 2000 and
2018, he au ho s ind ha Chinese loans, pa icula ly o in as uc u e p ojec s, a e
posi i ely linked o inc eased GVC pa icipa ion, unlike Wo ld Bank lending. The
s udy sugges s ha in as uc u e in es men s educe ade cos s, acili a ing long-
e m GVC in eg a ion, especially in downs eam sec o s. This inc eased pa icipa-
ion is expec ed o d i e expo g ow h and imp o e p oduc i i y. In a case s udy
o Egyp , Aly and Zaki in es iga e he ela ionship be ween deep ade ag eemen s,
ins i u ional quali y, and GVC pa icipa ion. Using da a on Fo eign Value-Added
(FVA) expo s and deep ade ag eemen s, he s udy inds a posi i e link be ween he
dep h o ade ag eemen s and GVC pa icipa ion, al hough low ins i u ional quali y
can diminish his e ec . Sec o al analysis shows signi ican a ia ion, wi h human-
capi al and echnology-in ensi e sec o s esponding mo e o deep ag eemen s, sug-
ges ing ha ag eemen dep h is c ucial o expo upg ading. The indings unde sco e
he impo ance o deepening ade ag eemen s o enhance Egyp ’s and o he A ican
coun ies’ GVC in eg a ion. Owusu analyzes he impac o GVC pa icipa ion on
agg ega e labo p oduc i i y g ow h in 46 de eloping coun ies, compa ing A ica
wi h o he egions. The s udy inds ha GVC in ol emen signi ican ly boos s p o-
duc i i y, wi h he s onges e ec s seen in Asia and La in Ame ica. GVCs imp o e
labo p oduc i i y p ima ily h ough e icien esou ce ealloca ion wi hin sec o s,
bu no ac oss sec o s. Bo h backwa d and o wa d GVC pa icipa ion con ibu e o
hese gains, hough o wa d pa icipa ion shows s onge posi i e e ec s. This high-
ligh s GVCs as a key pa hway o enhancing p oduc i i y in de eloping economies.
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A ica’s egional and global in eg a ion: in oduc ion o he special…
De Melo and Sollede use he EORA Mul i-Region Inpu -Ou pu (MRIO) da a o e
1995–2022 o p esen new, mo e comp ehensi e measu es o pa icipa ion in supply
chains a se e al le els: ac oss coun ies, egions, and sec o s. Compa ed wi h o he
egions, A ican coun ies mos ly engage in supply chain ade wi h coun ies ou side
A ica, displaying low alues o Regional Value Chain (RVC) indices. The pape hen
explo es he de e minan s o pa icipa ion in supply chains. Fo A ica, low a i s
and FDI a e posi i ely associa ed wi h egional supply chain ac i i y, indica ing ha
A CFTA implemen a ion should s imula e in a-A ican ade. The pape by K an z
deals wi h he Eas A ican Communi y’s (EAC) in eg a ion in o global and egional
alue chains (GVCs and RVCs) using de ailed ade da a and MRIO models. I i s
highligh s key ends in EAC membe s’ pa icipa ion in global and egional ade
a a ious le els, e ealing mode a e in eg a ion bu no clea end owa d g ea e
in ol emen . Regional in eg a ion is ad ancing in ag icul u e and ood p ocessing,
wi h Kenya eme ging as a key egional supplie o manu ac u ed goods. The sec-
ond pa p o ides causal e idence ha deepe in eg a ion, especially h ough o wa d
GVC linkages in manu ac u ing, enhances economic de elopmen , wi h egional
linkages o e ing mo e bene i s han global ones.
The second sub heme comp ises ano he h ee pape s. Ko nhe e al. add ess he
ques ion o how imp o ing po e iciency and se ice quali y can enhance ag icul-
u al expo s in Ghana, pa icula ly by helping i ms mee ood ade s anda ds. The
au ho s de elop a heo e ical model sugges ing ha expo e s a e willing o pay o
be e po se ices i he bene i s om educed bo de ejec ions ou weigh he cos s.
Using da a om 120 ag i- ood expo e s, he s udy inds ha abou wo- hi ds o i ms
a e willing o pay o educe po handling ime and spoilage isks. The indings high-
ligh he c i ical ole o ade acili a ion in boos ing ag icul u al expo s and educ-
ing po e y among smallholde a me s. Vogel examines he de e minan s o expo
di e si ica ion in A ican coun ies. Applying Bayesian Model A e aging (BMA) o
analyze 46 d i e s ac oss 47 A ican coun ies and 123 ading pa ne s om 1995 o
2018, he s udy inds ha s uc u al ac o s, such as ins i u ions and educa ion, play
a key ole in shaping A ica’s concen a ed expo baske s. T ade policies, pa icu-
la ly a i s and egional in eg a ion, a e also c ucial in p omo ing di e si ica ion,
wi h he A CFTA ha ing he po en ial o suppo his. Addi ionally, non- ade ac o s
like inancial de elopmen and exchange a e s abili y a e signi ican , highligh ing
ha di e en policies may be needed o di e si ica ion ac oss sec o s and con ex s.
Hoekman e al. examine how ade pa icipa ion a ec s i m p oduc i i y ac oss all
sec o s in Uganda, using de ailed adminis a i e eco ds. The s udy inds ha i ms
in ol ed in ade, pa icula ly h ough impo ing, expe ience a p oduc i i y boos ,
while expo ing i ms show highe p oduc i i y only in he manu ac u ing sec o .
Con a y o expec a ions, inc eased use o se ice inpu s does no s eng hen he link
be ween ade and p oduc i i y. In ac , a highe sha e o spending on se ices may
weaken his ela ionship, sugges ing ha he quali y o a ailable se ices may no
mee he s anda ds needed o global compe i i eness.
The emaining h ee pape s explo e he link be ween FDI and employmen . Men-
dola e al. in es iga e whe he mul ina ional en e p ises (MNEs) c ea e local job
oppo uni ies in Sub-Saha an A ica. Analyzing da a on mul ina ional a ilia es and
indi idual labo supply o e mo e han a decade, he s udy inds ha p oximi y o
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C. B andi e al.
a mul ina ional a ilia e inc eases employmen by abou 4%. Fo eign mul ina ional
a ilia es a e associa ed wi h a shi owa d o - a m jobs and a educ ion in on- a m
employmen . Addi ionally, emale employmen and “good jobs” ise nea o eign
a ilia es. These esul s indica e ha MNEs play a ole in local labo ma ke ans o -
ma ion. Looking a he case o Ghana, Ben a ello e al. s udy how FDI d i es shi s
in he employmen sha es o he indus ies in which hey ope a e. To his end, he
au ho s ma ch da a on g een ield FDI wi h indi idual-le el in o ma ion on wo ke s
employed in di e en indus ies. Thei esul s show ha FDI inc eases he sha e o
wo ke s employed in se ices ac oss all se ice indus ies, bu especially in e ail
ade. The e ec is mo e p onounced o educa ed wo ke s, pa icula ly women,
poin ing a educa ion as a key ac o o ma ch he labo demand o o eign i ms.
They do no ind ha FDI inc eases he size o he manu ac u ing sec o ; a he , he e
a e indica ions o a displacemen e ec . FDI may hus ha e con ibu ed o p ema u e
deindus ializa ion in Ghana. Lakemann e al. analyze he di ec and indi ec employ-
men e ec s o g een ield in es men , he mos common o m o FDI in A ica. They
cons uc a comp ehensi e, A ica-wide p ojec -le el da ase on g een ield FDI o
he pe iod 2013 o 2020. Based on his no el – and publicly a ailable – da ase , hey
show ha he o al numbe o g een ield FDI p ojec s in A ica is much la ge han
sugges ed, o example, by UNCTAD’s lagship Wo ld In es men Repo . Desc ip-
i e analyses based on he new da abase and ILO employmen da a sugges ha di ec
job c ea ion in g een ield p ojec s may be an impo an d i e o o mal employmen
c ea ion in se ices and manu ac u ing in selec ed coun ies. Howe e , di ec g een-
ield job c ea ion is small ela i e o o al job c ea ion, and indica i e eg essions
e en hin a po en ial c owding-ou o o mal employmen in domes ic i ms.
O e all, he collec ion o pape s in his special issue p o ides a combina ion o
c oss-coun y and case s udy e idence ha b oadens ou unde s anding o A ica’s
egional and global economic in eg a ion. While esea ch designs and me hodologi-
cal app oaches a y conside ably, all s udies sha e a ocus on da a analysis using
quan i a i e me hods. Fu u e esea ch could ely mo e s ongly on quali a i e me h-
ods, o ins ance del ing deepe in o sec o -speci ic impac s o GVC pa icipa ion,
pa icula ly in eme ging sec o s such as enewable ene gy, o he impo ance o di -
e en se ice sec o s such as inance and IT o economic in eg a ion. The e is also a
need o u he compa a i e s udies be ween A ican coun ies and o he de eloping
egions o illumina e he unique challenges and oppo uni ies A ican na ions ace in
economic in eg a ion and de elopmen .
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A ica’s egional and global in eg a ion: in oduc ion o he special…
Publishe ’s no e Sp inge Na u e emains neu al wi h ega d o ju isdic ional claims in published maps
and ins i u ional a ilia ions.
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