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Regional Trade Arrangements in Africa: Past Performance and the Way Forward
Author(s) -
Yang Yongzheng,
Gupta Sanjeev
Publication year - 2007
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/j.1467-8268.2007.00169.x
Subject(s) - trade facilitation , complementarity (molecular biology) , international economics , international trade , liberalization , free trade , revenue , economics , trade barrier , business , market access , investment (military) , international free trade agreement , regional integration , economic integration , foreign direct investment , market economy , geography , finance , genetics , macroeconomics , archaeology , politics , political science , law , biology , agriculture
: Regional trade arrangements (RTAs) in Africa have been ineffective in promoting trade and foreign direct investment. Relatively high external trade barriers and low resource complementarity between member countries limit both intra‐ and extraregional trade. Small market size, poor transport facilities and high trading costs make it difficult for African countries to reap the potential benefits of RTAs. To increase regional trade and investment, African countries need to undertake more broad‐based liberalization and streamline existing RTAs, supported by improvements in infrastructure and trade facilitation. Early action to strengthen the domestic revenue base would help address concerns over revenue losses from trade liberalization.