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.
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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
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ULB Institutional Repository
2013/7358, ULB -- Universite Libre de Bruxelles.
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