Faculty recent activities (Associate Prof. Maswana)

Prof. Maswana presented at the 2018 Annual Meeting of the American Economic Association (held in Philadelphia, PA on January 5-7, 2018, USA, https://www.aeaweb.org/conference/) on the topic “Growth Effects of Sino–African Bilateral Trade on African Economies”. In the paper, the effect of China-Africa’s bilateral trade intensity and concentration --which are alternatively incorporated as threshold variables in an endogenous growth model -- on economic growth of African countries is examined. Based on a panel threshold regression, findings suggest a heterogeneous trade-growth nexus with the effect of bilateral trade intensity on Africa’s economic growth being higher in countries whose trade intensity with China is higher compared to those with lower-intensity. However, the growth-effects of trade concentration for countries have been found to partially undetermined. Taken together, these results contrast with some earlier literature relying on linear-based approaches which mask the parameter heterogeneity and may sometimes lead to inappropriate policy recommendations. Drawn implications imply four categories of trade policies depending on the position of countries in a trade intensity-concentration matrix.
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