The Impact of Subregional Integration on Bilateral Trade: The Case of UEMOA
The aim of this study was to evaluate the impact of preferential trade agreements and the monetary union on bilateral trade between UEMOA member countries. With the use of a dynamic gravity model, it was possible to realize that membership in a common monetary zone and the implementation of common economic reforms had a significant effect on bilateral trade within the zone, although more in terms of diverting imports and exports than in terms of creating trade. Furthermore, economic policy distortions that foster informal transborder trade had a negative effect on trade within the region.
|Date of creation:||Dec 2008|
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