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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.

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Presentation on theme: "The IMF & African Trade Aaron Kratzat. --- Does the IMF … A) Increase South-South Trade by Decreasing Tariffs? B) Make Trade Better for Western States."— Presentation transcript:

1 The IMF & African Trade Aaron Kratzat

2 --- 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?

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

4 Hypotheses Increase IMF Loans No change in South-South manufacturing tariffs No change in agricultural tariffs Decrease in North-South manufacturing tariffs

5 Hypotheses (cont) Increase % of GDP from Agriculture --> Per Capita GDP decreases Foreign Direct Investment decreases

6 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

7 Hypotheses Increase IMF Loans No change in South-South manufacturing tariffs No change in agricultural tariffs Decrease in North-South manufacturing tariffs

8 Hypotheses (cont) Increase % of GDP from Agriculture --> Per Capita GDP decreases Foreign Direct Investment decreases

9 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


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