Africa's trade with China and US: has COVID-19 changed the trends of trade?
Journal of Economic Impact
; 3(2):55-66, 2021.
Article
in English
| CAB Abstracts | ID: covidwho-1836672
ABSTRACT
Africa's trade with China and the US is one of the international issues affecting development in the continent. This paper, therefore, examines the effects of COVID-19 on Africa's trade with the two countries by investigating whether the pandemic has changed the trends of the trade. The article explores the responses of the individual trade of China and the US with Africa to their own shocks, without and with the pandemic, using the vector autoregressive (VAR) model and monthly data covering 1970m01 (January 1970) to 2020m07 (July 2020). The results show that China's trade performs better while responding to a shock to America's trade than America's trade does while responding to a shock to China's trade, without and with COVID-19. This finding suggests that China has a stronger trade footing in Africa and that COVID-19 had not changed the trends of Africa's trade with China and America, even with the impact of the pandemic on China. China's dominant trade status in Africa is probably due to the country's large investment and aid in the continent. The key policy focus of Africa on trading with China and the US should therefore be how to achieve optimum trilateral trade thresholds in the face of potential trade-offs.
International Trade [EE600]; international trade; trends; development; models; coronavirus disease 2019; pandemics; China; Africa; USA; APEC countries; East Asia; Asia; high Human Development Index countries; upper-middle income countries; high income countries; North America; America; OECD Countries; very high Human Development Index countries; People's Republic of China; United States of America
Full text:
Available
Collection:
Databases of international organizations
Database:
CAB Abstracts
Language:
English
Journal:
Journal of Economic Impact
Year:
2021
Document Type:
Article
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