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Regional Integration: Do intra-African trade and migration improve income in Africa?

Author

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  • Blaise Gnimassoun

Abstract

Regional integration in Africa is a subject of great interest, but its impact on income has not been studied sufficiently. Using cross-sectional and panel estimations, this paper examines the impact of African integration on real per capita income in Africa. To do this, we consider intra-African trade and migration flows as quantitative measures reflecting the intensity of regional integration. In order to address the endogeneity concerns, we use a gravity-based IV strategy. Our results show that, from a long-term perspective, African integration has not been strong enough to generate a positive, significant and robust impact on real per capita income in Africa. However it appears to be significantly income-enhancing in the short term but only through inter-country migration. These results are robust to a wide range of specifications. Further analysis shows that economic diversification, financial development and the quality of transport and telecommunication infrastructure significantly affect the impact of intra-African trade on per capita income. Their improvement would make intra-African trade income-improving. Our policy recommendations have been formulated in this direction.

Suggested Citation

  • Blaise Gnimassoun, 2018. "Regional Integration: Do intra-African trade and migration improve income in Africa?," Working Papers of BETA 2018-09, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    • Handle: RePEc:ulp:sbbeta:2018-09
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    Cited by:

    1. Coulibaly, Dramane & Gnimassoun, Blaise & Mignon, Valérie, 2020. "The tale of two international phenomena: Migration and global imbalances," Journal of Macroeconomics, Elsevier, vol. 66(C).
    2. Gnimassoun, Blaise, 2025. "Immigration and labour productivity: A comparative effect," World Development, Elsevier, vol. 188(C).
    3. Blaise Gnimassoun, 2019. "How to Boost the Impact of Intra-African Trade on Income in Africa?," Open Economies Review, Springer, vol. 30(3), pages 541-557, July.
    4. Aliyu, Shehu Usman Rano & Salissu, Afees & Kale, Oyeyemi, 2024. "Migration and Youth Unemployment in Africa: Implications for the African Continental Free Trade Area," MPRA Paper 121437, University Library of Munich, Germany, revised 22 Jun 2024.

    More about this item

    Keywords

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    JEL classification:

    • E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F15 - International Economics - - Trade - - - Economic Integration
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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