Economic Integration Arrangements and Structure of Intra-African Trade
- Patrick E. Ejumedia
- Taiwo V. Ojapinwa
- Adebunmi Oduyoye-Ejumedia
- ( paper pages. 195 - 215 )
have pursued economic integration arrangements (EIAs) to facilitate production
and expand manufactured goods trade among members. However,
existing studies have only paid attention to EIAs and aggregate intra-trade
despite the disproportionate volume of intra-agriculture and intra-manufacture goods
trade in the various EIAs. This study, therefore, examined the effect of EIAs
on the structure of intra-African trade by considering the intra-agriculture
and intra-manufacture goods trade in 47 African countries classified into four
EIAs – Economic Community of West African States (ECOWAS), Southern African
Development Community (SADC), East African Community (EAC) and Economic
Community of Central African States (ECCAS) – for the period 2001 to 2018. The
study estimated a modified gravity model using the negative binomial pseudo-maximum
likelihood technique. Specifically, the formation of SADC and ECOWAS
significantly promoted aggregate intra-trade among their members. However,
while formation on EIAs was found to significantly increase intra-agriculture
goods trade in SADC and ECOWAS, there was no statistical evidence that EIAs
create intra-manufacturing goods trade. The formation of ECCAS and EAC was not
statistically significant in boosting aggregate intra-trade among their members,
however, it enhanced intra-agriculture and intra-manufacture goods trade among
its members, but the effect was statistically insignificant. Hence, there is the need to transform the agricultural
sector to deepen intra-trade and the manufacturing industry's development to increase
manufacturing goods trade.
Patrick E. Ejumedia, Taiwo V. Ojapinwa, Adebunmi Oduyoye-Ejumedia.
"Economic Integration Arrangements and Structure of Intra-African Trade"
The Nigerian Journal of Economic and Social Studies,
64 (2): 195 - 215.
F14, F15, O55