Economic Integration Arrangements and Structure of Intra-African Trade

  • Patrick E. Ejumedia
  • Taiwo V. Ojapinwa
  • Adebunmi Oduyoye-Ejumedia
  • ( paper pages. 195 - 215 )
The Nigerian Journal of Economic and Social Studies
Vol. 64, No. 2, July 2022
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Abstract

African countries 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.

Citation

Patrick E. Ejumedia, Taiwo V. Ojapinwa, Adebunmi Oduyoye-Ejumedia. 2022. "Economic Integration Arrangements and Structure of Intra-African Trade" The Nigerian Journal of Economic and Social Studies, 64 (2): 195 - 215.

JEL Classification

F14, F15, O55