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The IMF & African Trade. Aaron Kratzat. ---. Does the IMF … A) Increase South-South Trade by Decreasing Tariffs? B) Make Trade Better for Western States in Africa by Decreasing North-South Tariffs? C) Both D) Neither?. ---.

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The imf african trade
---

  • Does the IMF …

  • A) Increase South-South Trade by Decreasing Tariffs?

  • B) Make Trade Better for Western States in Africa by Decreasing North-South Tariffs?

  • C) Both

  • D) Neither?


The imf african trade
---

  • 20 states: Angola, Benin, Burkina Faso, Burundi, Cameroon, CAR, Congo Rep, Cote d’Ivoire, DR Congo, Kenya, Madagascar, Malawi, Mozambique, Nigeria, Rwanda, Senegal, So. Africa, Togo, Uganda & Zambia


Hypotheses
Hypotheses

  • Increase IMF Loans 

  • No change in South-South manufacturing tariffs

  • No change in agricultural tariffs

  • Decrease in North-South manufacturing tariffs


Hypotheses cont
Hypotheses (cont)

  • Increase % of GDP from Agriculture -->

  • Per Capita GDP decreases

  • Foreign Direct Investment decreases


Hypotheses cont1
Hypotheses Cont

  • FDI goes up as Freedom House Rating (inverted so most free is highest) and IMF loans go up, FDI goes down as Tariff Levels go up, and COMESA members will have more FDI


Hypotheses1
Hypotheses

  • Increase IMF Loans 

  • No change in South-South manufacturing tariffs

  • No change in agricultural tariffs

  • Decrease in North-South manufacturing tariffs


Hypotheses cont2
Hypotheses (cont)

  • Increase % of GDP from Agriculture -->

  • Per Capita GDP decreases

  • Foreign Direct Investment decreases


Hypotheses cont3
Hypotheses Cont

  • FDI goes up as Freedom House Rating (inverted so most free is highest) and IMF loans go up, FDI goes down as Tariff Levels go up, and COMESA members will have more FDI