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Economic diplomacy in Africa: the impact of regional integration versusbilateral diplomacy on bilateral trade

In: Research Handbook on Economic Diplomacy

Author

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  • Sylvanus Kwaku Afesorgbor

Abstract

The author focuses on the impact of economic diplomacy on exports among African states. He tests whether there is evidence of a trade-off or complementary interaction between regional integration and commercial diplomacy in trade facilitation. He compares the effects of these two instruments of economic diplomacy on bilateral trade by employing a gravity model for 45 African states over the period 1980–2005. The results show that bilateral diplomatic exchange is a relatively more significant determinant of bilateral exports among African states compared to regional integration. He also finds a nuanced interaction between these two instruments of economic diplomacy: the trade-stimulating effect of diplomatic exchange is less pronounced among African countries that are already shared membership of a regional bloc. Generally, this could mean that there exists a trade-off between regional integration and commercial diplomacy in facilitating exports or a lack of complementarity between these two instruments of economic diplomacy.

Suggested Citation

  • Sylvanus Kwaku Afesorgbor, 2018. "Economic diplomacy in Africa: the impact of regional integration versusbilateral diplomacy on bilateral trade," Chapters, in: Research Handbook on Economic Diplomacy, chapter 20, pages 326-346, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:16053_20
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    JEL classification:

    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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