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Regional Trade Arrangements in Africa; Past Performance and the Way Forward

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  • Yongzheng Yang
  • Sanjeev Gupta

Abstract

Regional trade arrangements (RTAs) in Africa have been ineffective in promoting trade and foreign direct investment. Relatively high external trade barriers and low resource complementarity between member countries limit both intra- and extraregional trade. Small market size, poor transport facilities and high trading costs make it difficult for African countries to reap the potential benefits of RTAs. To increase regional trade and investment, African countries need to undertake more broad-based liberalization and streamline existing RTAs, supported by improvements in infrastructure and trade facilitation. Early action to strengthen the domestic revenue base would help address concerns over revenue losses from trade liberalization.

Suggested Citation

  • Yongzheng Yang & Sanjeev Gupta, 2005. "Regional Trade Arrangements in Africa; Past Performance and the Way Forward," IMF Working Papers 05/36, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:05/36
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    References listed on IDEAS

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    Cited by:

    1. Independent Evaluation Group, 2006. "Assessing World Bank Support for Trade, 1987-2004 : An IEG Evaluation," World Bank Publications, The World Bank, number 6966.
    2. Anna Maria Mayda & Chad Steinberg, 2009. "Do South-South trade agreements increase trade? Commodity-level evidence from COMESA," Canadian Journal of Economics, Canadian Economics Association, vol. 42(4), pages 1361-1389, November.
    3. Thierry Verdier, 2010. "Regional Integration, Fragility and Institution Building: An Analytical Framework Applied to the African Context," EUI-RSCAS Working Papers 38, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
    4. Sylvanus Kwaku Afesorgbor, 2016. "Economic Diplomacy in Africa: The Impact of Regional Integration versus Bilateral Diplomacy on Bilateral Trade," Economics Working Papers 2016-09, Department of Economics and Business Economics, Aarhus University.
    5. Bartels, Frank L. & Napolitano, Francesco & Tissi, Nicola E., 2014. "FDI in Sub-Saharan Africa: A longitudinal perspective on location-specific factors (2003–2010)," International Business Review, Elsevier, vol. 23(3), pages 516-529.
    6. Lisa Borgatti, 2011. "Economic Integration in Sub-Saharan Africa," Chapters,in: International Handbook on the Economics of Integration, Volume I, chapter 20 Edward Elgar Publishing.
    7. Chiumya, Chiza, 2009. "Regional Trade Agreements: An African perspective of Challanges for Customs Policies and Future Strategies," MPRA Paper 17838, University Library of Munich, Germany, revised Aug 2009.
    8. International Monetary Fund, 2008. "The Gambia; Selected Issues and Statistical Appendix," IMF Staff Country Reports 08/325, International Monetary Fund.
    9. Yongzheng Yang, 2005. "Africa in the Doha Round; Dealing with Preference Erosion and Beyond," IMF Policy Discussion Papers 05/8, International Monetary Fund.
    10. Golub, Stephen S. & Mbaye, Ahmadou Aly, 2009. "National Trade Policies and Smuggling in Africa: The Case of The Gambia and Senegal," World Development, Elsevier, vol. 37(3), pages 595-606, March.
    11. Eduard Marinov, 2014. "Economic Integration in Africa – Overview, Progress and Challenges," Revista de Economie Mondiala / The Journal of Global Economics, Institute for World Economy, Romanian Academy, vol. 6(1), March.
    12. Afesorgbor, Sylvanus Kwaku & van Bergeijk, Peter A.G., 2011. "Multi-membership and effectiveness of regional trade agreements in Western and Southern Africa: a comparative study of ECOWAS and SADC," Proceedings of the German Development Economics Conference, Berlin 2011 1, Verein für Socialpolitik, Research Committee Development Economics.

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