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On the Empirics of Market Integration in ECOWAS

  • Daniel Gbetnkom
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    This paper uses the gravity model to investigate the market implications of unilateral and preferential economic reforms in the Economic Community of West African States (ECOWAS). The results show that the traditional explanatory variables of the gravity model are the significant determinants of trade flows in the ECOWAS region, and that belonging to this grouping fosters trade. Hence policy advice should focus on strengthening these factors, which are likely to enhance the possibility of greater intra-regional trade. This can contribute to drawing foreign direct investment to the region, enhancing policy credibility, and bringing greater economic and political stability.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/13841280601124955
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    Article provided by Taylor & Francis Journals in its journal Journal of Economic Policy Reform.

    Volume (Year): 9 (2006)
    Issue (Month): 4 ()
    Pages: 289-303

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    Handle: RePEc:taf:jpolrf:v:9:y:2006:i:4:p:289-303
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    1. James E. Anderson & Eric van Wincoop, 2000. "Gravity with Gravitas: A Solution to the Border Puzzle," Boston College Working Papers in Economics 485, Boston College Department of Economics.
    2. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-16, March.
    3. Kemp, Murray C. & Wan, Henry Jr., 1976. "An elementary proposition concerning the formation of customs unions," Journal of International Economics, Elsevier, vol. 6(1), pages 95-97, February.
    4. Foroutan, Faezeh & Pritchett, Lant, 1993. "Intra-sub-Saharan African Trade: Is It Too Little?," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 2(1), pages 74-105, May.
    5. Bergstrand, Jeffrey H, 1990. "The Heckscher-Ohlin-Samuelson Model, the Linder Hypothesis and the Determinants of Bilateral Intra-industry Trade," Economic Journal, Royal Economic Society, vol. 100(403), pages 1216-29, December.
    6. Thursby, Jerry G & Thursby, Marie C, 1987. "Bilateral Trade Flows, the Linder Hypothesis, and Exchange Risk," The Review of Economics and Statistics, MIT Press, vol. 69(3), pages 488-95, August.
    7. Limao, Nuno & Venables, Anthony J., 1999. "Infrastructure, geographical disadvantage, and transport costs," Policy Research Working Paper Series 2257, The World Bank.
    8. Bergstrand, Jeffrey H, 1989. "The Generalized Gravity Equation, Monopolistic Competition, and the Factor-Proportions Theory in International Trade," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 143-53, February.
    9. Baier, Scott L. & Bergstrand, Jeffrey H., 2001. "The growth of world trade: tariffs, transport costs, and income similarity," Journal of International Economics, Elsevier, vol. 53(1), pages 1-27, February.
    10. Brada, Josef C & Mendez, Jose A, 1983. "Regional Economic Integration and the Volume of Intra-Regional Trade: A Comparison of Developed and Developing Country Experience," Kyklos, Wiley Blackwell, vol. 36(4), pages 589-603.
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