Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/327969 
Year of Publication: 
2024
Citation: 
[Journal:] CBN Journal of Applied Statistics [ISSN:] 2476-8472 [Volume:] 15 [Issue:] 2 [Year:] 2024 [Pages:] 93-122
Publisher: 
The Central Bank of Nigeria, Abuja
Abstract: 
This study assesses the impact of economic integration on regional trade in African countries from 1980 to 2023. Employing a panel Generalized Method of Moments (GMM) technique, we analyzed trade patterns and integration policies using data from World Development Indicator (WDI), the findings reveal a negative associa- tion between economic integration and regional trade, suggesting that integration efforts may not be achieving the desired increase in regional trade. Economic inte- gration may cause trade diversion, leading countries to import from less efficient regional producers, thus reducing overall trade volume. Non-tariff barriers and structural similarities among economies can limit the benefits of integration. Ad- ditionally, political tensions and external factors like global economic downturns can further inhibit trade growth. Thus, the need to reassess existing economic in- tegration policies and address challenges of infrastructural deficiencies and policy inconsistencies. Key policy actions include harmonizing trade policies, investing in infrastructure, strengthening institutions, promoting regional value chains, and en- hancing monitoring. Inclusive stakeholder engagement is vital to make integration efforts more effective and trade driven.
Subjects: 
GMM
integration
regional
trade
tariff
JEL: 
C12
C23
F4
Persistent Identifier of the first edition: 
Document Type: 
Article

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