Multi-membership and effectiveness of regional trade agreements in Western and Southern Africa: a comparative study of ECOWAS and SADC
AbstractUsing a gravity model for 35 countries and the years 1995-2006 we estimate the impact of regional trade agreements in Africa (in particular ECOWAS and SADC) and compare this to the a benchmark of North South trade integration (Europe's preferential trade agreement). We find that - ECOWAS and SADC membership significantly increases bilateral trade flows (and by more than for example preferential trade agreements with the EU do), - SADC membership has a stronger impact compared to ECOWAS and - that the impact of multi-membership critically depends on the characteristics of the overlapping RTA We find a positive impact if an additional membership complements the integration process of the original RTA: overlapping memberships had a significant positive effect on bilateral trade within the ECOWAS bloc but it is insignificant for SADC. --
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Bibliographic InfoPaper provided by Verein für Socialpolitik, Research Committee Development Economics in its series Proceedings of the German Development Economics Conference, Berlin 2011 with number 1.
Date of creation: 2011
Date of revision:
Sub Sahara Africa; regional economic integration; South-South trade; North-South trade intra-regional trade; gravity model; international trade; multi-membership;
This paper has been announced in the following NEP Reports:
- NEP-AFR-2011-07-27 (Africa)
- NEP-ALL-2011-07-27 (All new papers)
- NEP-INT-2011-07-27 (International Trade)
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