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Editorial

From the Editor

The International Trade Journal, Vol. 34, No. 6 (November - December 2020)

Dear Readers,

Welcome to the final issue of The International Trade Journal, Vol. 34, No. 6 (November - December 2020). This issue focuses on Sub-Saharan Africa (SSA). It includes articles that look at the effect of globalization on gender inequality in SSA, how exchange rate depreciations affect trade balances in East Africa, whether growth spills over from industrial countries into SSA, and the long- and short-run relationships between trade and growth in South Africa.

The first article, by Hodabalo Bataka, looks at how globalization affects gender inequality in SSA. The article uses panel data from 32 African countries between 1990 and 2016. The study’s measure of gender inequality, which was produced by the United Nations Development Programme, measures inequality related to reproductive health, political representation, and economic status. The author finds that gender inequality is lower in countries that are more globalized. This is true whether globalization is measured in terms of outcomes (de facto globalization) or barriers to globalization (de jure globalization). It also appears to be true for economic, social, and political dimensions of globalization.

Thesecond article, by Fetene Bogale Hunegnaw and Soyoung Kim, looks at how exchange rate depreciations affect trade balances in manufacturing, mining, and agriculture in East Africa.Footnote1 Using data from 12 countries in East Africa from between 1980 and 2016, the authors find that depreciations affect trade balances in different sectors to different degrees. The largest effect is in manufacturing where a1% devaluation improves the trade balance by about 0.5%. The effect is smaller in mining (about 0.4%). In agriculture, depreciations have the opposite effect: a1% devaluation worsens the trade balance by about 0.2%.

The third article, by Jemberu Lulie Mekonnen, looks at whether growth among industrial countries spills over to countries in Sub-Saharan Africa. The author divides the sample into two periods: 1981 to 2000 and 2001 to 2015. Spillovers from countries’ top ten trading partners are visible in both periods. When the author breaks the spillovers down by region, growth in Europe positively spills over only in the earlier period, while growth in the United States spills over only in the later period.

The final article in this issue focusing on SSA, by Kwame Osei-Assibey and Omolemo Digkang, looks at long- and short-run relationships between trade and gross domestic product (GDP) in South Africa.Footnote2 The authors argue that although earlier studies of South Africa have looked at the link between exports and growth, few have looked at the relationship between these variables and imports. They find that export growth drives both economic and import growth in South Africa in the long run. However, they also find ashort-run relationship between imports and GDP, with causality running in both directions.

As usual, we would like to thank the people without whom the ITJ would not succeed. We would like to thank the authors who contribute their articles, the anonymous referees who give detailed and timely comments, the team at the International Trade Institute at Texas A&M International University who process submissions quickly and efficiently, our Editorial Board who guide the journal, and our publisher, Taylor and Francis, who ensures the ITJ keeps its high standards.

Notes

1 Several recent articles in the ITJ have looked at the effect of exchange rates on trade balances in developing countries (Ari, Cergibozan, and Cevik Citation2019; Bahmani-Oskooee and Harvey Citation2015; Bahmani-Oskooee and Harvey Citation2018; Cao-Alvira Citation2014; Cergibozan and Ari Citation2018; Soleymani, Chua, and Fatah Citation2016).

2 Several recent articles in the ITJ have looked at the relationship between growth and trade in developing countries. Most notably, using data from 42 countries in SSA, Zahonogo (Citation2018) finds anon-linear relationship between growth and trade. Two other recent studies look at the relationship between exports and growth in South Asia (Ali and Li Citation2018; Reza etal. Citation2019).

References

  • Ali,G., and Z.Li. 2018. “Exports-led Growth or Growth-led Exports in the Case of China and Pakistan: An Empirical Investigation from the ARDL and Granger Causality Approach.” The International Trade Journal 32 (3):293–314. doi:10.1080/08853908.2017.1379449.
  • Ari,A., R.Cergibozan, and E.Cevik. 2019. “J-curve in Turkish Bilateral Trade: ANonlinear Approach.” The International Trade Journal 33 (1):31–53. doi:10.1080/08853908.2018.1521316.
  • Bahmani-Oskooee,M., and H.Harvey. 2015. “The J-curve: Evidence from Industry-Level Data between the U.S. And Indonesia.” The International Trade Journal 29 (2):103–114. doi:10.1080/08853908.2015.1005779.
  • Bahmani-Oskooee,M., and H.Harvey. 2018. “Do Inpayments and Outpayments Respond to Exchange Rate Changes Asymmetrically: Evidence from Malaysia.” The International Trade Journal 32 (4):317–342. doi:10.1080/08853908.2018.1425167.
  • Cao-Alvira,J.J. 2014. “Real Exchange Rate Volatility on the Short- and Long-Run Trade Dynamics in Colombia.” The International Trade Journal 28 (1):45–64. doi:10.1080/08853908.2013.820654.
  • Cergibozan,R., and A.Ari. 2018. “The Exchange Regime and Trade Balance in Turkey.” The International Trade Journal 32 (4):363–387. doi:10.1080/08853908.2017.1412372.
  • Reza,S.M., H.Fan, B.Wang, M.B.Ahmed, and A.K.M.Mehdi. 2019. “Trade (Exports) as an Opportunity for Bangladesh: AVECM Analysis.” The International Trade Journal 33 (1):95–110. doi:10.1080/08853908.2018.1511489.
  • Soleymani,A., S.Y.Chua, and H.C.A.Fatah. 2016. “The Effects of Currency Depreciation on Industry Trade Flows between Malaysia and China.” The International Trade Journal 30 (3):181–206. doi:10.1080/08853908.2016.1138908.
  • Zahonogo,P. 2018. “Globalization and Economic Growth in Developing Countries: Evidence from Sub-Saharan Africa.” The International Trade Journal 32 (2):189–208. doi:10.1080/08853908.2017.1333933.

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