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Trade Liberalization and Export Competitiveness: Evidence from the EU-ECOWAS Trade

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  • Ofei, Edmund Okraku

Abstract

This study investigates the impact of EU trade liberalisation on the export competitive ness of ECOWAS countries. Trade liberalisation is captured by import tariffs in the EU market whiles export competitiveness is captured by the export value of ECOWAS countries. The study uses the gravity model, fixed and random effects as well as the Hausman test for a country pair panel data of 15 ECOWAS and EU 15 countries for the period beginning 1995 to 2014. The study finds a positive impact of trade liberalisation on export competitiveness and estimates the export value of ECOWAS countries to increase by 0.487% for every 1% reduction of import tariffs in the EU.

Suggested Citation

  • Ofei, Edmund Okraku, 2016. "Trade Liberalization and Export Competitiveness: Evidence from the EU-ECOWAS Trade," MPRA Paper 87808, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:87808
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    References listed on IDEAS

    as
    1. de Sousa, José, 2012. "The currency union effect on trade is decreasing over time," Economics Letters, Elsevier, vol. 117(3), pages 917-920.
    2. Lanre Kassim, 2013. "The Impact of Trade Liberalisation on Export Growth and Import Growth in Sub-Saharan Africa," Studies in Economics 1310, School of Economics, University of Kent.
    3. World Bank, 2012. "World Development Indicators 2012," World Bank Publications - Books, The World Bank Group, number 6014, August.
    4. World Bank, 2016. "World Development Indicators 2016," World Bank Publications - Books, The World Bank Group, number 23969, August.
    5. Anne-Célia Disdier & Keith Head, 2008. "The Puzzling Persistence of the Distance Effect on Bilateral Trade," The Review of Economics and Statistics, MIT Press, vol. 90(1), pages 37-48, February.
    6. A. U. Santos-Paulino, 2002. "Trade Liberalisation and Export Performance in Selected Developing Countries," Journal of Development Studies, Taylor & Francis Journals, vol. 39(1), pages 140-164.
    7. John R. Baldwin & Wulong Gu, 2004. "Trade Liberalization: Export-market Participation, Productivity Growth, and Innovation," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 20(3), pages 372-392, Autumn.
    8. Ratnaike, Yasanji C., 2012. "Is there an empirical link between trade liberalisation and export performance?," Economics Letters, Elsevier, vol. 117(1), pages 375-378.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    export competitiveness; trade liberalisation; EPA; panel data; gravity model; fixed effects; random Effects; hausman test.;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F1 - International Economics - - Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • F6 - International Economics - - Economic Impacts of Globalization
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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