African Regional Agreements: Impact on Trade with or without Currency Unions
AbstractThe aim of this paper is (i) to assess the impact of regional agreements on members' trade in Sub-Saharan Africa (intra-regional trade as well as trade with the rest of the world), controlling for the other traditional determinants and (ii) to compare the respective effect of the preferential trade agreements and the currency unions. Considering the period 1962--96, we first assess the average impact of each regional agreement on their implementation period and second we show how these impacts have evolved. An 'augmented' gravity model is designed, relying on a transport cost function, in which specific dummies allow trade creation and trade diversion effects to be separated. The model is estimated in panel with bilateral specific effects, to isolate the non-observable characteristics of each pair of countries and according to the Hausman--Taylor (1981) method, which takes into account a possible endogeneity of some explanatory variables. During their implementation, the African regional trade agreements have generated a significant increase in trade between members, although initially often through trade diversion. In the two agreements of the CFA franc zone, the currency unions have largely reinforced the positive effect of the corresponding preferential trade agreements on intra-regional trade, while dampening their trade diversion effect. Copyright 2004, Oxford University Press.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Centre for the Study of African Economies (CSAE) in its journal Journal of African Economies.
Volume (Year): 13 (2004)
Issue (Month): 2 (June)
Contact details of provider:
Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Phone: +44-(0)1865 271084
Fax: 01865 267 985
Web page: http://www.jae.oupjournals.org/
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- S. Standaert & G. Rayp, 2012. "Regional Integration Agreements and Rent-Seeking in Africa," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 12/773, Ghent University, Faculty of Economics and Business Administration.
- Garth Frazer & Johannes Van Biesebroeck, 2007.
"Trade Growth under the African Growth and Opportunity Act,"
NBER Working Papers
13222, National Bureau of Economic Research, Inc.
- Garth Frazer & Johannes Van Biesebroeck, 2010. "Trade Growth under the African Growth and Opportunity Act," The Review of Economics and Statistics, MIT Press, vol. 92(1), pages 128-144, February.
- Garth Frazer & Johannes Van Biesebroeck, 2007. "Trade Growth under the African Growth and Opportunity Act," Working Papers tecipa-289, University of Toronto, Department of Economics.
- Sampawende Jules Tapsoba, 2011. "Union Monétaire en Afrique de l'Ouest: Quelles Réponses à l'Hétérogénéité des Chocs ?," Working Papers halshs-00554309, HAL.
- Sylvanus Kwaku Afesorgbor, 2013. "Revisiting the Effectiveness of African Economic Integration. A Meta-Analytic Review and Comparative Estimation Methods," Economics Working Papers 2013-13, School of Economics and Management, University of Aarhus.
- Naudé, Wim, 2010. "Development Progress in sub-Saharan Africa: Lessons from Botswana, Ghana, Mauritius and South Africa," Working Paper Series UNU-WIDER Working Paper W, World Institute for Development Economic Research (UNU-WIDER).
- repec:ner:leuven:urn:hdl:123456789/253806 is not listed on IDEAS
- repec:ner:leuven:urn:hdl:123456789/253794 is not listed on IDEAS
- Bezuidenhout, Henri & Naude, Wim, 2008. "Foreign Direct Investment and Trade in the Southern African Development Community," Working Paper Series RP2008/88, World Institute for Development Economic Research (UNU-WIDER).
- FE, Doukouré Charles, 2011.
"Qualité des Institutions et Commerce International: Évidence à Partir des Exportations de l'UEMOA
[Institutions Quality and International Trade: Evidence from WAEMU Exports]," MPRA Paper 33333, University Library of Munich, Germany.
- Michida, Etsuyo & Atici, Cemal & Kojima, Michikazu, 2011. "Does Quality Matter in the Iron and Scrap Trade?," IDE Discussion Papers 282, Institute of Developing Economies, Japan External Trade Organization(JETRO).
- Thierry Verdier, 2010.
"Regional Integration, Fragility and Institution Building: An Analytical Framework Applied to the African Context,"
RSCAS Working Papers
2010/38, European University Institute.
- Thierry Verdier, 2010. "Regional Integration, Fragility and Institution Building: An Analytical Framework Applied to the African Context," EUI-RSCAS Working Papers 38, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
- Cipollina, Maria & Salvatici, Luca, 2007. "EU and developing countries: an analysis of preferential margins on agricultural trade flows," Working Papers 7219, TRADEAG - Agricultural Trade Agreements.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.