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Multiple Memberships in Regional Trade Agreements and Intraregional Trade Dynamics in Sub‐Saharan Africa

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  • Amsalu Dachito Chigeto
  • Jayamohan M. K.

Abstract

Over recent decades, the impact of overlapping regional trade agreements (RTAs) on trade has sparked considerable debate. This study examines the effects of multiple RTA memberships on trade dynamics in Sub‐Saharan Africa (SSA). Analyzing panel data from 43 SSA countries over 22 years (2000–2021) using the Poisson‐Pseudo Maximum Likelihood estimation technique, we find that countries participating in multiple RTAs engage in enhanced bilateral trade within the SSA region. Furthermore, gaining a hub position is positively associated with increased bilateral trade engagement. Our analysis also confirms that network centrality metrics, derived from potential trade connections, are positively related to trade volume. These findings imply that accession to an additional RTA not only creates more opportunities for integration but may also help mitigate politically motivated trade barriers. Moreover, the market access benefits from participating in multiple RTAs appear to outweigh the complexities associated with establishing rules of origin and lengthy trade negotiations. To significantly boost intra‐SSA trade and foster deeper regional integration, policymakers in SSA should prioritize aggressively negotiating and implementing RTAs. Moreover, intraregional trade strategies should prioritize systematically securing hub positions within the regional trade network through RTA membership to maximize trade volumes and drive comprehensive regional integration.

Suggested Citation

  • Amsalu Dachito Chigeto & Jayamohan M. K., 2025. "Multiple Memberships in Regional Trade Agreements and Intraregional Trade Dynamics in Sub‐Saharan Africa," African Development Review, African Development Bank, vol. 37(2), June.
    • Handle: RePEc:bla:afrdev:v:37:y:2025:i:2:n:e70013
    DOI: 10.1111/1467-8268.70013
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