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Is uemoa trade creating? an empirical investigation

Author

Listed:
  • Afees Salisu

    (University of Ibadan)

  • Idris Ademuyiwa

    (University of Ibadan)

Abstract

This paper estimates the determinants of bilateral trade flows between UEMOA members and other countries in the ECOWAS region. It also estimates the trade effects of UEMOA using a more simplified Vinerian type gravity model. Further, country-specific analysis was conducted to evaluate any probable variation in trade creation or diversion effects across member countries in the RTA. It finds that UEMOA is trade creating even though country specific analysis reveals that individual member countries do not necessarily follow a similar pattern as only Cote-d'Ivoire appears to be trade creating. It also finds that economic size, geographical factors and political stability are significant determinants of UEMOA's bilateral trade. Therefore, programmes aimed at promoting UEMOA members' bilateral trade are highly desirable from the appropriate authorities.

Suggested Citation

  • Afees Salisu & Idris Ademuyiwa, 2012. "Is uemoa trade creating? an empirical investigation," Economics Bulletin, AccessEcon, vol. 32(2), pages 1-21.
    • Handle: RePEc:ebl:ecbull:eb-12-00409
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    File URL: http://www.accessecon.com/pubs/EB/2012/Volume32/EB-12-V32-I2-A21.pdf
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    More about this item

    Keywords

    Trade; ECOWAS; WAMZ; Gravity model;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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