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Trade Liberalization and Intra‐Regional Trade: A Case of Selected ECOWAS Countries
Author(s) -
Shuaibu Mohammed
Publication year - 2015
Publication title -
african development review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.654
H-Index - 32
eISSN - 1467-8268
pISSN - 1017-6772
DOI - 10.1111/1467-8268.12120
Subject(s) - generalized method of moments , economics , international economics , free trade , economic integration , trade barrier , liberalization , fixed effects model , international trade , regional trade , quality (philosophy) , panel data , econometrics , market economy , philosophy , epistemology
This paper conducts an empirical investigation of the relationship between trade liberalization and intra‐ECOWAS in selected economies. Using system and difference generalized method of moments, findings showed that trade liberalization has contributed to intra‐regional trade in West Africa. Our results also show that better institutional quality and infrastructure are associated with higher intra‐ECOWAS trade. Furthermore, using fixed and random effect estimators our findings were validated, thus reinforcing support to the hypothesis that removal of trade restrictions particularly in the manufacturing and primary sectors, good governance and infrastructural developments enhance trade amongst ECOWAS countries.