Regional Value Chains and Industrialization of Sub-Saharan Africa

Abstract

The objective of this article is to determine the effects of integration into regional value chains on the industrialization of the countries of sub-Saharan Africa. To this end, after a review of the literature, we carried out an econometric analysis of panel data. The estimates with the GMM in the system have led to the following results: 1) integration into regional value chains participates in the industrialization of this sub-region. 2) Upstream integration contributes more to industrialization than downstream integration. In these circumstances, African leaders must encourage trade in intermediate products. For this to be effective, actions must be directed towards improving the level of infrastructure and the training of young Africans.