Analysis of Agri-Food Trade Structures
To Promote Agri-Food Trade Networks
In the Islamic Countries
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development of the intra-OIC trade network, as the organization has a diverse membership in
geographical terms, so it will be important to look at ways of reducing trade costs that are not
unduly focused on intra-regional partnerships. Complementarity of trade flows in agriculture is
a reason for working in a non-discriminatory way to ensure that cross-regional linkages can take
place and develop adequately, as distant partners often have different climactic situations and
comparative advantages, so they are comparatively well placed to take advantage of market
opportunities, subject to being able to overcome trade costs. Subsection 4 investigates the role
of policy in driving these outcomes.
Table 10: Average out Degree Centrality for Leading Products, by Exporting Regional Group,
2005 and 2016
African Group Arab Group Asian Group
2005 2016 2005 2016 2005 2016
Live animals 4.92 4.32 4.58 7.52 6.90 7.21
Tobacco 3.89 5.60 5.83 8.28 11.21 10.75
Oil seeds 4.06 5.78 5.38 5.79 8.11 8.66
Crude rubber 6.58 5.09 2.96 4.23 10.65 12.71
Cork and wood 8.69 6.50 4.90 6.58 9.58 12.30
Rice 2.11 3.00 7.56 4.71 11.52 9.80
Vegetables 5.43 5.87 10.53 12.00 10.89 11.26
Fruit and nuts 5.59 6.58 10.74 14.82 16.00 14.37
Coffee 6.04 6.22 5.96 7.50 10.65 13.36
Other edible products 5.24 6.16 10.13 16.66 15.25 20.00
Cotton 6.46 4.55 5.13 3.77 9.19 11.00
Bread products 3.60 2.95 11.21 12.55 14.63 16.39
Palm oil 3.39 3.18 4.45 4.75 18.14 22.50
Fish and crustaceans 10.34 10.21 11.61 14.29 19.81 20.48
Cocoa and chocolate 6.73 5.33 8.34 10.58 18.90 20.03
Rest of 06 3.13 3.15 5.76 9.50 9.17 11.17
Rest of 04 3.05 3.78 4.76 6.53 6.84 9.17
Source: Authors’ calculations based on UN Comtrade Data.
3.3. Trade Balances and Comparative Advantage
The above analysis has considered exports and imports separately. However, it is possible to
sum them to produce a measure of the product-level balance of trade. A negative figure indicates
that a region is a net importer of the product in question, while a positive value indicates that it
is a net exporter. From an economic point of view, a position of deficit or surplus is not
informative. It simply reflects comparative advantage, a point that is examined in further detail
below. Policymakers should avoid undue concern with the aggregate balance of trade, summing
across all products, as it is largely driven by macroeconomic factors, specifically the balance
between savings and investment, rather than factors specific to trade. An undue focus on a net
deficit position, for example, can lead to overuse of active trade policy to the detriment of local
consumers.