Africa’s economic regionalism

is there any other obstacle?

Atif Awad, Ishak Yussof

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

Purpose: The purpose of this paper is to extend the gravity model to examine the role of infrastructure (including human capital (HC)), macroeconomic policies, the institutional quality and the colonial regimes on intra-African trade during the period 1990-2013. The results show that the basic gravity variables have substantial influence on the bilateral trade in the continent. Most interestingly, whilst internal conflicts appear to have harmful and significant impacts on the flow of such trade, HC, the flow of foreign direct investment (FDI) and the British colonial regime appear as encouraging factors. The results of the study imply that devoting more resources to HC and creating a favourable investment environment should come as a top priority in current efforts to facilitate Africa’s economic regionalism. Design/methodology/approach: The paper employs Tobit technique on a semi-log extended form for the gravity model. Findings: The results show that the basic gravity variables have substantial influence on the bilateral trade in the continent. Most interestingly, whilst internal conflicts appear to have harmful and significant impacts on the flow of such trade; HC, the flow of FDI and the British colonial regime come out as encouraging factors. Originality/value: The results provided can be useful to design policies oriented to facilities intra-trade between African economies. So far, this is the first study that incorporates the soft type of infrastructures, colonization and institutional quality in the investigation of the factors that can influence intra-Africa trade.

Original languageEnglish
Pages (from-to)344-361
Number of pages18
JournalJournal of Economic Studies
Volume44
Issue number3
DOIs
Publication statusPublished - 2017

Fingerprint

Regionalism
Economics
Africa
Human capital
Factors
Internal conflict
Gravity model
Foreign direct investment
Institutional quality
Gravity
Bilateral trade
Macroeconomic policy
Policy design
Resources
Tobit
Design methodology
Colonization

Keywords

  • Africa
  • Bilateral trade
  • Colonization
  • Economic integration
  • Internal conflict

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

Cite this

Africa’s economic regionalism : is there any other obstacle? / Awad, Atif; Yussof, Ishak.

In: Journal of Economic Studies, Vol. 44, No. 3, 2017, p. 344-361.

Research output: Contribution to journalArticle

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