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Analysis of Agri-Food Trade Structures

To Promote Agri-Food Trade Networks

In the Islamic Countries

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Figure 2: World Imports of Agricultural Products, 1995-2016, OIC versus non-OIC, Billion USD

Source: UN Comtrade; and authors’ calculations.

To provide a preliminary indication of the importance of different products in global agri-food

trade, Figure 3 presents a breakdown of world exports bymain product category (title) in Annex

1. (Where breakdowns by country are not relevant, world exports equal world imports, subject

to a small amount of measurement error; it is therefore appropriate to use export data only.)

The main bulk of world exports are accounted for by agri-food products, although the relative

balance among the three title categories varies significantly over time. In 1995, agricultural raw

materials constituted 17.5% of the total, but by 2016, that number had fallen to 11.5%. By

contrast, fish products stood at 8.9% in 1995, but by 2016 had risen to 9.4%. These differences

show that the sources of export market dynamism are quite different across sectors. Indeed, as

these figures suggest, growth rates of exports have differed significantly across sectors.

Agricultural raw materials grew the slowest, at an average annualized rate of 3.0%, compared

with 5.3% for fish products, and 5.4% for agri-food products. These dynamics are important,

because they have implications for the export dynamism of economies that specialize in each

type of product. All countries, particularly those in the low and middle income groups, are

focused on growing trade linkages rapidly as one way of supporting sustained productivity and

income growth. Specialization in agri-food products is therefore associated with more rapid

trade growth than trade in agricultural raw materials, likely related to the fact that agri-food

products can involve some level of processing. Although the difference in annualized growth

rates is relatively small, over time the effect of compounding is significant. For example, 3.0%

annual growth over ten years leads to a cumulative 34% increase in trade, but 5.4% annual

growth leads to a cumulative 69% increase in trade, or slightly over double the effect.

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Non-OIC OIC