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Trade realignment position in ECOWAS with gravity model

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  • Nnanna P. Azu

Abstract

This paper assesses the realignment position of trade in West African region with respect to the emergence of China and India vis-a-vis trade flow with traditional trade partners. Applying PPML technique with importer, exporter, and year fixed effect, the bilateral trade effects between ECOWAS and her trade partners are captured with dummy. These allow trades to be represented from both sides of its occurrences (import and export) rather than viewing from one side of it. Results revealed that ECOWAS trade with her emerging and traditional trade partner increased over time but rate of increases are reducing with the traditional partners - China and India are accumulating more market shares towards displacing these old friends. Given the trend, in no long time, there could be a fundamental realignment of trade from traditional trade partners for envisaged reliance on China and India.

Suggested Citation

  • Nnanna P. Azu, 2019. "Trade realignment position in ECOWAS with gravity model," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 12(2), pages 103-112.
    • Handle: RePEc:ids:ijepee:v:12:y:2019:i:2:p:103-112
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    Citations

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    Cited by:

    1. Nnanna P. Azu & Benedette Nneka Okezie & Amatus Hirwa, 2019. "Gravity Perspective of Trade Realignment: Assessing China’s Engagement in West Africa," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 11(3), pages 165-182, September.
    2. Stacy Julius & Nnanna P. Azu & Maimuna Y. Muhammad, 2019. "Assessing the Impact of Terrorism in Trade Development in the SADC Region: A Gravity Model Approach," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(10), pages 1147-1159, October.

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