The impact of AGOA on Export Flows from sub-Saharan Africa: A dynamic system GMM analysis

Working Paper 837

Abstract

This study seeks to understand the relationship between the United States imports from sub-Saharan Africa (SSA) and the overall exports from SSA between 1996 and 2018. It examines the drivers of that relationship drawing from the existing theories of international trade. The study found that the bilateral economic size of the US and SSA, the economic similarity index and relative factor endowment differences correlate positively with exports from SSA. Our results align with Linder’s hypothesis, gravity model on trade and H-O-S theory of international trade. We recommend policy reforms.