Regional Integration Agreements and Rent-Seeking in Africa
AbstractThis paper explores the motives behind the formation of intra-African regional integration agreements (RIAs). We aim to see whether rent-seeking can be identified as a statistically significant driving force of African integration. The traditional reason for economic integration, the static and dynamic effects, predict no or even a negative effect on welfare. Moreover, many of the new regionalism theories are conditional on strong economic integration. Two exceptions are rent-seeking behavior and the regime boosting hypothesis. Not only can they credibly explain the proliferation of African trade agreements in the absence of a positive effect on welfare, they can also account for the lack of progress in clearing away the many obstructions to regional trade. Because most African agreements involve more than two partner countries, the decision to enter a RIA cannot be analyzed by examining agreements between pairs of countries. Instead, we propose regressing whether a country is a member of a certain agreement on the characteristics of both country and agreement. We find that corruption does have an effect on the willingness to join RIAs, but that it is strongly dependent on the level of GDP. Moreover, for a given level of GDP the effect of corruption is non-linear.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Ghent University, Faculty of Economics and Business Administration in its series Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium with number 12/773.
Length: 24 pages
Date of creation: Feb 2012
Date of revision:
Regional Integration; Rent-seeking; Africa;
Find related papers by JEL classification:
- F53 - International Economics - - International Relations and International Political Economy - - - International Agreements and Observance; International Organizations
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
This paper has been announced in the following NEP Reports:
- NEP-AFR-2012-05-02 (Africa)
- NEP-ALL-2012-05-02 (All new papers)
- NEP-INT-2012-05-02 (International Trade)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mansfield, Edward D. & Milner, Helen V. & Rosendorff, B. Peter, 2002. "Why Democracies Cooperate More: Electoral Control and International Trade Agreements," International Organization, Cambridge University Press, vol. 56(03), pages 477-513, June.
- Emanuel Ornelas, 2005. "Rent Destruction and the Political Viability of Free Trade Agreements," The Quarterly Journal of Economics, MIT Press, vol. 120(4), pages 1475-1506, November.
- Grossman, G.M. & Helpman, E., 1992.
"Protection for Sale,"
21-92, Tel Aviv.
- Grossman, Gene & Helpman, Elhanan, 1993. "Protection for Sale," CEPR Discussion Papers 827, C.E.P.R. Discussion Papers.
- Gene M. Grossman & Elhanan Helpman, 1992. "Protection For Sale," NBER Working Papers 4149, National Bureau of Economic Research, Inc.
- Grossman, G.M. & Helpman, E., 1992. "Protection for Sale," Papers 162, Princeton, Woodrow Wilson School - Public and International Affairs.
- Daron Acemoglu & Simon Johnson & James A. Robinson, 2001.
"The Colonial Origins of Comparative Development: An Empirical Investigation,"
American Economic Review,
American Economic Association, vol. 91(5), pages 1369-1401, December.
- Daron Acemoglu & Simon Johnson & James A. Robinson, 2000. "The Colonial Origins of Comparative Development: An Empirical Investigation," NBER Working Papers 7771, National Bureau of Economic Research, Inc.
- Grossman, Gene & Helpman, Elhanan, 1994.
"The Politics of Free Trade Agreements,"
CEPR Discussion Papers
908, C.E.P.R. Discussion Papers.
- Grossman, G.M. & Helpman, E., 1993. "The Politics of Free Trade Agreements," Papers 14-93, Tel Aviv.
- Grossman, G.M. & Helpman, E., 1993. "The Politics of Free Trade Agreements," Papers 166, Princeton, Woodrow Wilson School - Public and International Affairs.
- Gene M. Grossman & Elhanan Helpman, 1993. "The Politics of Free Trade Agreements," NBER Working Papers 4597, National Bureau of Economic Research, Inc.
- Giovanni Maggi & Andres Rodriguez-Clare, 1998.
"The Value of Trade Agreements in the Presence of Political Pressures,"
Journal of Political Economy,
University of Chicago Press, vol. 106(3), pages 574-601, June.
- Maggi, G & Rodriguez-Clare, A, 1996. "The Value of Trade Agreements in the Presence of Political Pressures," Papers 180, Princeton, Woodrow Wilson School - Public and International Affairs.
- Baier, Scott L. & Bergstrand, Jeffrey H., 2004. "Economic determinants of free trade agreements," Journal of International Economics, Elsevier, vol. 64(1), pages 29-63, October.
- Céline Carrère, 2004. "African Regional Agreements: Impact on Trade with or without Currency Unions," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 13(2), pages 199-239, June.
- Nathan Nunn & Leonard Wantchekon, 2011.
"The Slave Trade and the Origins of Mistrust in Africa,"
American Economic Review,
American Economic Association, vol. 101(7), pages 3221-52, December.
- Nathan Nunn & Leonard Wantchekon, 2009. "The Slave Trade and the Origins of Mistrust in Africa," NBER Working Papers 14783, National Bureau of Economic Research, Inc.
- Baunsgaard, Thomas & Keen, Michael, 2010.
"Tax revenue and (or?) trade liberalization,"
Journal of Public Economics,
Elsevier, vol. 94(9-10), pages 563-577, October.
- Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August.
- Cadot, Olivier & de Melo, Jaime & Olarreaga, Marcelo, 1999. "Asymmetric Regionalism in Sub-Saharan Africa: Where Do We Stand?," CEPR Discussion Papers 2299, C.E.P.R. Discussion Papers.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nathalie Verhaeghe).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.