Macro-locational determinants of Chinese foreign direct investment in Cameroon
- Authors: Andangnui, Quintabella , Louw, Lynette , Cattaneo, Nicolette S
- Date: 2024
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/470199 , vital:77335 , https://hdl.handle.net/10520/ejc-sajce_v27_n1_a5714
- Description: Macro-locational determinants of foreign direct investment (FDI) constitute a country’s comparative advantage in attracting FDI. Although literature identifies potential determinants of Chinese FDI, empirical studies reveal significant variation across countries, necessitating investigation of specific macro-locational factors in each context. Despite its abundant resources and reliance on FDI for development, Cameroon has experienced slow FDI growth. Efforts to enhance trade and investment relations between Cameroon and China make an understanding of Chinese FDI drivers crucial for policymakers. This study aims to ascertain the significance of macro-locational determinants in attracting Chinese FDI to Cameroon.
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- Date Issued: 2024
Africa’s Trade in Services and the African Continental Free Trade Area Agreement
- Authors: Cattaneo, Nicolette S
- Date: 2020
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/470155 , vital:77331
- Description: In recent years there has been growing interest in the role and position of the services sector and services trade in structural transformation and development. This is associated with the services sector’s significant share in domestic and global value added and employment, the increasing tradability of services and the notable proportion of foreign direct investment (FDI) flowing to the services sector. The role of the services sector in facilitating production and trade in other key sectors of the economy, particularly manufacturing, is also of growing importance in the context of global value chains. In the light of pressure on developing countries to liberalise their services sectors in North–South trade and investment agreements, often before domestic and regional frameworks have developed sufficiently, the need for a developmental trade strategy for the services sector has become more pressing. This report examines the growth and structure of trade in services in Africa and its importance for services trade policy formulation and the African Continental Free Trade Area (AfCFTA) negotiations on services trade.
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- Date Issued: 2020
South Africa’s trade in cultural goods and services with a focus on cultural trade with BRICS partners
- Authors: Cattaneo, Nicolette S , Snowball, Jeanette D
- Date: 2020
- Subjects: To be catalogued
- Language: English
- Type: text , book chapter
- Identifier: http://hdl.handle.net/10962/470339 , vital:77350 , ISBN , https://doi.org/10.1080/10220461.2015.1069208
- Description: This article examines the potential role the BRICS Contingent Reserve Arrangement (CRA) could play in stabilising countries experiencing a high degree of economic volatility. The CRA is a US$100 billion pooled reserve fund that has its origins in the fifth BRICS Summit hosted in Durban. The CRA was set up to help emerging nations deal with liquidity shortages and to strengthen financial systems during crisis. The article examines the debate on the effect of capital market liberalisation and collates some relevant macroeconomic data on the BRICS economies in order to explore the case for a contingent reserve facility. It is found that emerging economies that rapidly liberalised their capital accounts experienced increased economic volatility, creating an uncertain macroeconomic environment and hampering the ability of policymakers to conduct appropriate stabilisation policy. The article takes the position that the CRA could play an important role in providing liquidity to distressed emerging economies. However it concludes that the CRA facility does not signal a significant break from the Bretton Woods institutions on the part of the BRICS countries.
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- Date Issued: 2020
The BRICS contingent reserve arrangement and its position in the emerging global financial architecture
- Authors: Cattaneo, Nicolette S , Biziwick, Mayamiko , Fryer, David
- Date: 2015
- Subjects: To be catalogued
- Language: English
- Type: text , book chapter
- Identifier: http://hdl.handle.net/10962/470366 , vital:77352 , ISBN
- Description: In its present shape and size the BRICS Contingent Reserve Arrangement (CRA) should be regarded as symbolic and exploratory rather than as a substantive challenger to the International Monetary Fund (IMF). However, the momentum of the BRICS process and the experience of the similar Association of Southeast Asian Nations plus Three (ASEAN+ 3) process suggest that the CRA has the potential to develop in two directions. Firstly, it should aim to become an adequate safety net and provide high-quality macroeconomic monitoring, and hence ensure participating countries’ independence from the IMF. Secondly, it should aim to draw in other emerging economies. However, the CRA in itself does not represent a significant break from prevailing orthodoxy. Its limited scope may condemn it to playing a bit part in the global financial system.
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- Date Issued: 2015
The rationale for and potential role of the BRICS Contingent Reserve Arrangement
- Authors: Biziwick, Mayamiko , Cattaneo, Nicolette S , Fryer, David
- Date: 2015
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/470386 , vital:77354 , https://doi.org/10.1080/10220461.2015.1069208
- Description: This article examines the potential role the BRICS Contingent Reserve Arrangement (CRA) could play in stabilising countries experiencing a high degree of economic volatility. The CRA is a US$100 billion pooled reserve fund that has its origins in the fifth BRICS Summit hosted in Durban. The CRA was set up to help emerging nations deal with liquidity shortages and to strengthen financial systems during crisis. The article examines the debate on the effect of capital market liberalisation and collates some relevant macroeconomic data on the BRICS economies in order to explore the case for a contingent reserve facility. It is found that emerging economies that rapidly liberalised their capital accounts experienced increased economic volatility, creating an uncertain macroeconomic environment and hampering the ability of policymakers to conduct appropriate stabilisation policy. The article takes the position that the CRA could play an important role in providing liquidity to distressed emerging economies. However it concludes that the CRA facility does not signal a significant break from the Bretton Woods institutions on the part of the BRICS countries.
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- Date Issued: 2015
Structural change, productivity and the middle income trap: South Africa in comparative perspective
- Authors: Fryer, David , Cattaneo, Nicolette S
- Date: 2014
- Subjects: To be catalogued
- Language: English
- Type: text , book chapter
- Identifier: http://hdl.handle.net/10962/470354 , vital:77351 , ISBN
- Description: Most BRICS countries have been characterized as either being in the middle income trap (South Africa, and in most studies, Brazil) or vulnerable to it. While China and India are unlikely to stagnate to the extent of being caught in such a trap, there is concern about the impact on the global economy if their growth rates decelerate significantly. T his paper explores patterns of structural change and productivity growth in the BRICS countries with a focus on South Africa and the concept of a middle income trap. The paper is structured as follows. Section 1 considers definitions and which countries are affected. Section 2 considers competing explanations of patterns of structural change and productivity growth. Section 3 focuses on the productivity debate in South Africa from a comparative perspective. Section 4 concludes with policy implications and directions for future research in the BRICS countries.
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- Date Issued: 2014
FDI flows to sub-Saharan Africa: The impact of finance, institutions, and natural resource endowment
- Authors: Ezeoha, Abel E , Cattaneo, Nicolette S
- Date: 2012
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/470177 , vital:77333 , https://link.springer.com/article/10.1057/ces.2012.18
- Description: Using a panel data from 38 Sub-Sahara African (SSA) countries and a dynamic system GMM model, this study examines the individual and interactive impact of financial development, institutional quality, and natural resource endowment on both the stock and the flow of inward foreign direct investment (FDI) to the region. It finds that inward FDI is more dynamic in non-resource-rich than in resource-rich countries; that in non-resource-rich countries, foreign investors rely more on the efficiency of the governance institutions, but in resource-rich countries, the formal financial system provides alternative platform for managing the stock of existing FDI, as well as for providing financial allocative and intermediation roles; that the impact of natural resource endowment and macroeconomic factors are more robust in the stock than it is in the flow of inward FDI; that the capacity of an SSA country's financial system to attract and support foreign investments is dependent on the quality of her telecommunication infrastructure, the quality of legal and governance structures, and the kind of FDI in question; that the positive impact of infrastructure on FDI depends on the size of a country's market; and that although natural resource endowment appears to be key source of inward FDI to SSA countries, its importance has diminished since the start of 2000.
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- Date Issued: 2012
A review of methodological approaches used to analyse the impact of trade liberalisation on growth and poverty in South Africa
- Authors: Cattaneo, Nicolette S
- Date: 2011
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/470144 , vital:77330
- Description: A critical review of the methodological approaches used to explore the impact of trade liberalisation in South Africa on growth and poverty in particular is preceded by a re-examination of key features of the theoretical debate on trade liberalisation and the controversies surrounding the associated empirical evidence. The appropriateness of the questions and concerns highlighted in the literature on ‘trade reform’ in South Africa are then considered, in the light of the recent emphasis on using trade policy to meet the country’s national and regional development goals. An important reason for the polarised and ideological debate on trade, growth and poverty has been the persistent view that a ‘free trade’ system is a relevant benchmark, and argues that the theory and evidence are not as compelling as proponents contend. Instead, alternative scenarios should be evaluated against those that are relevant for industrial, other development goals rather than relative to an unrealistic free trade ideal. In the debate,the broader state of play in multilateral, regional and bilateral trade negotiations and the associated obligations and pressures should also be appreciated. The dialogue on ‘trade reform’ in South Africa should move beyond simply characterising the debate as one between ‘free trade’ and ‘protectionism’.The appropriate question is rather how to manage trade sensibly, in order to allow for growth without creating balance of payment difficulties and policy space to promote the structural change necessary to create jobs.
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- Date Issued: 2011
Services trade liberalisation and the role of the services sector in South African development
- Authors: Cattaneo, Nicolette S
- Date: 2011
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/470314 , vital:77347
- Description: The purpose of this paper is to explore the implications of services trade liberalisation for employment creation and industrial policy goals in South Africa. It begins by critically examining the debate surrounding the role of the services sector in development, with a particular focus on its role in facilitating industrialisation. It then considers the implications of increased trade in services and the growing pressure on developing countries to liberalise their services trade in light of both the economic and social roles of the services sector. The paper highlights South Africa’s GATS and other commitments in the services field, with reference to the regional–bilateral versus multilateral liberalisation debate. The final section outlines research needed on the services sector in light of South Africa’s employment creation and industrial policy goals. The aim is to provide a review that will facilitate more in-depth analysis exploring the strategic balance between services sectors to develop domestically, regionally or to open multilaterally, taking account of South Africa’s international obligations and national development objectives.
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- Date Issued: 2011
Exchange rate pass‐through to import prices in South Africa: is there asymmetry?
- Authors: Karoro, Tapiwa D , Aziakpono, Meshach J , Cattaneo, Nicolette S
- Date: 2009
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/469753 , vital:77291 , https://doi.org/10.1111/j.1813-6982.2009.01216.x
- Description: This paper examines the magnitude and speed of exchange rate pass‐through (ERPT) to import prices in South Africa. It further explores whether the direction and size of changes in the exchange rate have different pass‐through effects on import prices, i.e. whether the exchange rate pass‐through is symmetric or asymmetric. The findings of the study suggest that ERPT in South Africa is incomplete but relatively high. Furthermore, ERPT is found to be higher in periods of rand depreciation than appreciation, which supports the binding quantity constraint theory. There is also evidence to suggest that pass‐through is slightly higher in periods of small changes than large changes in the exchange rate in harmony with the menu cost theory when the invoices are denominated in the exporters' currency.
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- Date Issued: 2009
Production networks, economic integration and the services sector: Implications for regional trade agreements in southern Africa
- Authors: Cattaneo, Nicolette S
- Date: 2009
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/470237 , vital:77339 , https://doi.org/10.1080/02589000903399496
- Description: Debate on an appropriate framework for economic integration in southern Africa has hitherto focused largely on matters relating to trade in final goods, with little analysis of the potential benefits of production sharing and fragmented trade, or of challenges related to the accompanying role of the services sector. The first goal of this article is thus to explore the possible benefits for the development of specialisation and trade expansion related to the international fragmentation of production, and whether such benefits may be better harnessed by southern African countries in a context of regional integration. Secondly, the critical role of the services sector in production-sharing arrangements leads to questions about developing country services sectors and regional versus multilateral services liberalisation. The article therefore considers the importance of the services sector in the fragmentation context, and the growing debates surrounding services aspects of developing country regional trade agreements. It is argued that while there may be a case for the promotion of production-sharing arrangements in regional trade agreements in southern Africa, key constraints that continue to hinder the region's trade and development agenda remain the conflicting rules of origin in economic arrangements with overlapping membership, and non-tariff barriers to trade, particularly intra-regional transport costs.
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- Date Issued: 2009
Regional trade agreements and South-South FDI: potential benefits and challenges for SACU-MERCOSUR investment relations
- Authors: Cattaneo, Nicolette S
- Date: 2009
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/470256 , vital:77341
- Description: In December 2004, the countries of the Common Market of the South (MERCOSUR) and the Southern African Customs Union (SACU) 1 signed an initial preferential trade agreement (PTA) as a step towards the eventual formation of a free trade area. The PTA was expanded and consolidated during subsequent negotia-tions that took place between 2004 and 2008, and the new agreement, signed by SACU ministers in April 2009 and MER-COSUR in December 2008, is expected to enter into force at the beginning of 2010. At present, the PTA provides for preferences on a limited range of products, and includes annexes relating to rules of origin, safeguards, dispute settlement, sanitary and phy-tosanitary measures and customs administration. 2 While trade between MERCOSUR and SACU comprises only a small propor-tion (1-2%) of each bloc’s total trade, bilateral trade has trebled since 2001 (Woolfrey, 2009). From SACU’s perspective, this trade largely involves the export of primary products in exchange for higher value-added goods from MERCOSUR, effectively reinforc-ing North-South trade patterns (Roberts, 2004: 10). 3 The ra-tionale for the PTA thus appears to rest on trade and investment potential and, more broadly, on growing moves to intensify South-South trade and investment cooperation. Such moves have gath-ered momentum with the increasing influence of emerging econ-omies such as the BRIC.
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- Date Issued: 2009
Theoretical approaches to the analysis of trade and poverty and a review of related literature on South Africa
- Authors: Cattaneo, Nicolette S , Dodd, S
- Date: 2007
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/470402 , vital:77356 , https://hdl.handle.net/10520/EJC21450
- Description: This paper considers a variety of theoretical approaches to the analysis of trade and poverty, from conventional trade theory to a livelihoods approach towards the poverty impact of trade reform. The conclusion is reached that further development and integration of alternative frameworks that move beyond traditional trade theory is important for the evolution of pro-poor trade policy reform. The paper uses the methodological framework put forward by Winters (2000a,b) and McCulloch et al. (2001) to review existing research, prior to the SALDRU Trade and Poverty Project, relevant to the relationship between trade and poverty in South Africa. Important avenues for future research are identified. In concluding, the paper comments on appropriate policies that may be inferred from the theoretical discussion and South African research surveyed that could accompany trade reform to ameliorate potential adverse poverty outcomes.
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- Date Issued: 2007
Intra-versus inter-industry specialisation, labour market adjustment and poverty: implications for regional integration in Southern Africa
- Authors: Cattaneo, Nicolette S , Fryer, David
- Date: 2003
- Subjects: To be catalogued
- Language: English
- Type: text , working paper
- Identifier: http://hdl.handle.net/10962/470188 , vital:77334 , ISBN
- Description: Although there is little doubt that increasing trade enhances overall welfare, the literature provides strong theoretical arguments and empirical evidence that there may be important adverse effects for particular groups and countries. It is useful to divide these into two categories. Firstly, there are the long run distributional consequences of trade, such as those highlighted by the Stolper-Samuelson theorem. Secondly, to the extent that the adjustment to equilibrium is not smooth, there are important dislocations associated with the movement of factors between industries in the transition period. These adverse effects are important, both because of their welfare implications, and because the affected groups or countries will constitute a source of political resistance to trade. Offsetting this picture, however, is the important view that such effects, both in terms of the long-run distributional consequences and the dislocations during adjustment, are likely to be less if liberalisation leads to intra-industry rather than inter-industry specialisation.
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- Date Issued: 2003
A Critical Analysis of the Regional Trade Model for Southern Africa (RTMSA): Implications for Future Research
- Authors: Cattaneo, Nicolette S
- Date: 2000
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/470133 , vital:77329
- Description: The studies of Evans (1996, 1997a, b) appear to be the most analytically ambitious attempts to address, empirically, the question of the economic desirability of a southern African free trade area (FTA). Evans (1996) is apparently the only serious study available to date which gives detailed sectoral effects of the formation of a SADC FTA for each country. It thus appears to be the only available study which quantitatively addresses the critical questions currently occupying policy-makers and researchers in the region of the potential sectoral and distributional effects of the formation of the FTA. 1 Despite the criticisms levelled at this type of impact study, some quantification of the possible effects of the FTA is undoubtedly important, in order to determine whether there is likely to be a need for compensation within the union, and whether the benefits will be large enough for those who gain to compensate those adversely affected. The results of these studies, and the method by which they were derived, therefore warrant careful consideration.
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- Date Issued: 2000