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The Intensity of Trade Creation and Trade Diversion in COMESA, ECCAS and ECOWAS: A Comparative Analysis

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  • Jacob Wanjala Musila

Abstract

This paper uses the gravity model to estimate the intensity of trade creation and trade diversion in COMESA, ECCAS and ECOWAS. Using annual data for the years 1991--8, we find that the intensity of trade creation or diversion varies from region to region and from period to period. The empirical results suggest that the intensity of trade creation is higher in the ECOWAS followed by COMESA. The trade creation effect in the ECCAS is not collaborated empirically. The estimated results also suggest that the trade diversion effects are weak in the three regional organisations. The results reinforce the idea that size factors (level of GNP and population) and resistance factors (distance and language) play an important role in the determination of the flow of international trade. Copyright 2005, Oxford University Press.

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  • Jacob Wanjala Musila, 2005. "The Intensity of Trade Creation and Trade Diversion in COMESA, ECCAS and ECOWAS: A Comparative Analysis," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 14(1), pages 117-141, March.
  • Handle: RePEc:oup:jafrec:v:14:y:2005:i:1:p:117-141
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    Cited by:

    1. Buys, Piet & Deichmann, Uwe & Wheeler, David, 2006. "Road network upgrading and overland trade expansion in Sub-Saharan Africa," Policy Research Working Paper Series 4097, The World Bank.
    2. Jacob Wanjala Musila & Simon Pierre Sigué, 2010. "Corruption and International Trade: An Empirical Investigation of African Countries," The World Economy, Wiley Blackwell, vol. 33(1), pages 129-146, January.
    3. FE, Doukouré Charles, 2011. "Qualité des Institutions et Commerce International: Évidence à Partir des Exportations de l'UEMOA
      [Institutions Quality and International Trade: Evidence from WAEMU Exports]
      ," MPRA Paper 33333, University Library of Munich, Germany.
    4. DJEMMO FOTSO, Arnaud, 2014. "The potential effects of the ECCAS Free Trade Area on Trade Flows," MPRA Paper 59863, University Library of Munich, Germany.
    5. Jane Korinek & Mark Melatos, 2009. "Trade Impacts of Selected Regional Trade Agreements in Agriculture," OECD Trade Policy Papers 87, OECD Publishing.
    6. Attiat Ott & Oswaldo Patino, 2009. "Is Economic Integration the Solution to African Development?," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 15(3), pages 278-295, August.
    7. Steven Buigut, 2016. "Trade Effects of the East African Community Customs Union: Hype Versus Reality," South African Journal of Economics, Economic Society of South Africa, vol. 84(3), pages 422-439, September.
    8. Sylvanus Kwaku Afesorgbor, 2013. "Revisiting the Effectiveness of African Economic Integration. A Meta-Analytic Review and Comparative Estimation Methods," Economics Working Papers 2013-13, Department of Economics and Business Economics, Aarhus University.
    9. Seck, Abdoulaye & Cissokho, Lassana & Makpayo, Kossi & Haughton, Jonathan, 2010. "How Important Are Non-Tariff Barriers to Agricultural Trade within ECOWAS?," Working Papers 2010-3, Suffolk University, Department of Economics.

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