African Trade Ties and Networks

Abstract

This study examines existing trade networks in African countries. Using bilateral trade statistics, a regression analysis examining colonial legacy, geographical relationships, and existing subregional agreements in the gravity model is conducted. The results suggest that existing regional agreements are associated with more trade to some extent, but with exceptions. Moreover, using network analysis, the African trade ties and their historical changes are considered. Visualization of African trade networks clearly revealed that the importance ofWestern trade counterparts was overshadowed by emerging Asian and other countries. Moreover, the importance of intra-African trade is confirmed. While African intra-regional trade is often described as minimal, network analysis also suggests that African countries are indeed connected through trade ties even though trade volume may be low.