Trade creation and trade diversion in West African Monetary Zone (WAMZ)
AbstractThis paper estimates the trade effects of WAMZ between 2005 and 2010 using the gravity model. In addition, it also estimates the determinants of bilateral trade flows in WAMZ countries. The paper finds that WAMZ has been trade diverting although country specific analysis reveals that individual countries in the RTA do not necessarily exhibit similar trends as Nigeria and Gambia are export creating while Ghana and Guinea are export diverting. It also finds that economic size, geographical factors and political stability are significant determinants of WAMZ's bilateral trade. Therefore, regional policies in WAMZ should be more directed towards promoting initiatives that will enhance extra and intra-WAMZ trade by the appropriate authorities.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 32 (2012)
Issue (Month): 4 ()
Contact details of provider:
Trade; ECOWAS; WAMZ; Gravity model;
Find related papers by JEL classification:
- F1 - International Economics - - Trade
- C5 - Mathematical and Quantitative Methods - - Econometric Modeling
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ghosh, Sucharita & Yamarik, Steven, 2004. "Are regional trading arrangements trade creating?: An application of extreme bounds analysis," Journal of International Economics, Elsevier, vol. 63(2), pages 369-395, July.
- Paul R. Masson & Xavier Debrun & Catherine A. Pattillo, 2002.
"Monetary Union in West Africa: Who Might Gain, Who Might Lose, and Why?,"
IMF Working Papers
02/226, International Monetary Fund.
- Xavier Debrun & Paul Masson & Catherine Pattillo, 2005. "Monetary union in West Africa: who might gain, who might lose, and why?," Canadian Journal of Economics, Canadian Economics Association, vol. 38(2), pages 454-481, May.
- Athukorala, Prema-chandra, 2012. "Asian trade flows: Trends, patterns and prospects," Japan and the World Economy, Elsevier, vol. 24(2), pages 150-162.
- Roberto Longo & Khalid Sekkat, 2004.
"Economic obstacles to expanding intra-African trade,"
ULB Institutional Repository
2013/7358, ULB -- Universite Libre de Bruxelles.
- Longo, Robert & Sekkat, Khalid, 2004. "Economic Obstacles to Expanding Intra-African Trade," World Development, Elsevier, vol. 32(8), pages 1309-1321, August.
- Carrere, Celine, 2006. "Revisiting the effects of regional trade agreements on trade flows with proper specification of the gravity model," European Economic Review, Elsevier, vol. 50(2), pages 223-247, February.
- Martínez-Zarzoso, Inmaculada & Felicitas, Nowak-Lehmann D. & Horsewood, Nicholas, 2009. "Are regional trading agreements beneficial?: Static and dynamic panel gravity models," The North American Journal of Economics and Finance, Elsevier, vol. 20(1), pages 46-65, March.
- Rashad Cassim, 2001. "The Determinants of Intra-Regional Trade in Southern Africa with Specific Reference to South Africa and the Rest of the Region," Working Papers 01051, University of Cape Town, Development Policy Research Unit.
- Jugurnath, Bhavish & Stewart, Mark & Brooks, Robert, 2007. "Asia/Pacific Regional Trade Agreements: An empirical study," Journal of Asian Economics, Elsevier, vol. 18(6), pages 974-987, December.
- Baier, Scott L. & Bergstrand, Jeffrey H., 2004. "Economic determinants of free trade agreements," Journal of International Economics, Elsevier, vol. 64(1), pages 29-63, October.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.