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The Intensity of Trade Creation and Trade Diversion in COMESA, ECCAS and ECOWAS: A Comparative Analysis

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  • Jacob Wanjala Musila
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    Abstract

    This paper uses the gravity model to estimate the intensity of trade creation and trade diversion in COMESA, ECCAS and ECOWAS. Using annual data for the years 1991--8, we find that the intensity of trade creation or diversion varies from region to region and from period to period. The empirical results suggest that the intensity of trade creation is higher in the ECOWAS followed by COMESA. The trade creation effect in the ECCAS is not collaborated empirically. The estimated results also suggest that the trade diversion effects are weak in the three regional organisations. The results reinforce the idea that size factors (level of GNP and population) and resistance factors (distance and language) play an important role in the determination of the flow of international trade. Copyright 2005, Oxford University Press.

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    Bibliographic Info

    Article provided by Centre for the Study of African Economies (CSAE) in its journal Journal of African Economies.

    Volume (Year): 14 (2005)
    Issue (Month): 1 (March)
    Pages: 117-141

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    Handle: RePEc:oup:jafrec:v:14:y:2005:i:1:p:117-141

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    Cited by:
    1. Jane Korinek & Mark Melatos, 2009. "Trade Impacts of Selected Regional Trade Agreements in Agriculture," OECD Trade Policy Papers 87, OECD Publishing.
    2. Buys, Piet & Deichmann, Uwe & Wheeler, David, 2006. "Road network upgrading and overland trade expansion in Sub-Saharan Africa," Policy Research Working Paper Series 4097, The World Bank.
    3. 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.
    4. Seck, Abdoulaye & Cissokho, Lassana & Makpayo, Kossi & Haughton, Jonathan, 2010. "How Important Are Non-Tariff Barriers to Agricultural Trade within ECOWAS?," Working Papers 2010-3, Suffolk University, Department of Economics.
    5. 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.

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