Table of Contents

Handbook on Trade and Development

Handbook on Trade and Development

Edited by Oliver Morrissey, Ricardo Lopez and Kishor Sharma

This Handbook comprehensively explores the complex relationships between trade and economic performance in developing countries. Insightful chapters cover issues such as trade, growth and poverty reduction; trade costs, facilitation and preferences; sub-Saharan Africa’s reliance on trade in primary commodities, informal cross-border trade, agglomeration and firm exporting; imported technology, exchange rates and the impact of firm exporting; the increasing importance of China in world trade and links between FDI and trade. This Handbook provides an essential overview of trade issues facing developing countries.

Chapter 11: Integration and regional trade in sub-Saharan Africa

Festus Ebo Turkson

Subjects: development studies, development economics, economics and finance, development economics, international economics

Abstract

This chapter employs gravity regressions to estimate the ex post trade effects of regional trade agreements (RTAs) in sub-Saharan Africa (SSA) for 25 EU and 48 SSA countries using data from 1960 to 2006. In addition to EU-SSA RTAs the chapter considers the Economic Community of West African States (ECOWAS), the Economic Community of Central African States (ECCAS), the Southern Africa Development Corporation (SADC), the East African Community (EAC) and the Intergovernmental Authority on Drought and Development (IGADD). Similarities of trade and production structures limit the contribution of RTAs to intra-SSA trade (South–South trade), although RTAs within SSA increase trade on average by 5–30 per cent for member countries of ECOWAS and SADC. The results suggest the need for SSA countries to focus on expanding and integrating regional markets in order to significantly improve trade performance. The EU’s trade preferences with SSA on average increase exports from SSA countries to the EU by 17–24 per cent, so North–South trade has been beneficial.

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