Is uemoa trade creating? an empirical investigation

Afees Salisu and Idris Ademuyiwa ()
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Idris Ademuyiwa: University of Ibadan

Economics Bulletin, 2012, vol. 32, issue 2, A21

Abstract: This paper estimates the determinants of bilateral trade flows between UEMOA members and other countries in the ECOWAS region. It also estimates the trade effects of UEMOA using a more simplified Vinerian type gravity model. Further, country-specific analysis was conducted to evaluate any probable variation in trade creation or diversion effects across member countries in the RTA. It finds that UEMOA is trade creating even though country specific analysis reveals that individual member countries do not necessarily follow a similar pattern as only Cote-d'Ivoire appears to be trade creating. It also finds that economic size, geographical factors and political stability are significant determinants of UEMOA's bilateral trade. Therefore, programmes aimed at promoting UEMOA members' bilateral trade are highly desirable from 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: 2012-05-29
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