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

Author

Listed:
  • 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
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    4. 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.
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    6. 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.
    7. World Bank, 2016. "World Development Indicators 2016," World Bank Publications - Books, The World Bank Group, number 23969, April.
    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.
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    More about this item

    Keywords

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    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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