Trade creation and trade diversion in West African Monetary Zone (WAMZ)

Afees Salisu and Idris Ademuyiwa ()
Additional contact information
Idris Ademuyiwa: University of Ibadan

Economics Bulletin, 2012, vol. 32, issue 4, 3071-3081

Abstract: This paper estimates the trade effects of WAMZ between 2005 and 2010 using the gravity model. In addition, it also estimates the determinants of bilateral trade flows in WAMZ countries. The paper finds that WAMZ has been trade diverting although country specific analysis reveals that individual countries in the RTA do not necessarily exhibit similar trends as Nigeria and Gambia are export creating while Ghana and Guinea are export diverting. It also finds that economic size, geographical factors and political stability are significant determinants of WAMZ's bilateral trade. Therefore, regional policies in WAMZ should be more directed towards promoting initiatives that will enhance extra and intra-WAMZ trade by the appropriate authorities.

Keywords: Trade; ECOWAS; WAMZ; Gravity model (search for similar items in EconPapers)
JEL-codes: C5 F1 (search for similar items in EconPapers)
Date: 2012-11-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2012/Volume32/EB-12-V32-I4-P294.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-12-00405

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().