General domestic trade structures and institutions in African countries

Abstract

The fact that the African economy depends on imported factors of production has serious consequences on cost structure, productivity and the exploitation of natural resources. What is more, with the African crisis, economic development patterns have not led to any significant improvement, in the lives of Africans. The major economic indicators reveal deep structural weaknesses and a degree of vulnerability in the socio-economic structure of the continent. The dependence of the African economy is equally obvious in domestic trade. Africa's exports comprise only a small number of agricultural and mineral commodities. Such dependency on raw material exports continues to have adverse effects on the export earnings of Africa because of the great inelasticity of supply of such products and the instability of international market prices.