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An empirical analysis of the trade-creation effect of African regional economic communities

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  • Samuel Admassu

    (Deakin University)

Abstract

Currently, African countries are deepening and widening their regional trade agreements, aiming to establish a continent-wide free trade area by 2017. Using a comprehensive dataset of 148 countries for the period 1970–2010, I found robust evidence that African regional economic communities increase their members’ exports and imports, albeit with varying degrees. The results reveal that African trade blocs increase members’ exports by up to 175% and imports by as much as 200%. This paper documents a greater effect on exports and imports of those regional trade blocs with deeper integration.

Suggested Citation

  • Samuel Admassu, 2019. "An empirical analysis of the trade-creation effect of African regional economic communities," Empirical Economics, Springer, vol. 56(3), pages 843-863, March.
    • Handle: RePEc:spr:empeco:v:56:y:2019:i:3:d:10.1007_s00181-017-1382-7
    DOI: 10.1007/s00181-017-1382-7
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    Cited by:

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    3. Emma Serwaa Obobisa & Haibo Chen & Emmanuel Caesar Ayamba & Claudia Nyarko Mensah, 2021. "The Causal Relationship Between China-Africa Trade, China OFDI, and Economic Growth of African Countries," SAGE Open, , vol. 11(4), pages 21582440211, December.
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    More about this item

    Keywords

    African trade agreements; CENSAD; COMESA; EAC; ECCAS; ECOWAS; SADC; Gravity equation;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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