Economic integration in Africa

Assandé Désiré Adom, Subhash C. Sharma and Akm Morshed

The Quarterly Review of Economics and Finance, 2010, vol. 50, issue 3, 245-253

Abstract: There is a renewed interest in the debate on integration in Africa since the creation of the African Union in 2002. This study investigates the feasibility of a full-fledged economic union in Africa. Towards this goal, we examine the short- and long-term relationships among key macro-variables in eight largest African economies during the period from 1976 to 2005. We observe the existence of common long-term trends in real output, price level, private consumption, government consumption, investment and trade flows among these eight countries. In addition, we observe that there exists common cycles (short-term relationships) in real output, investment and trade flows for these countries. These two critical findings indicate the presence of macroeconomic interdependence among these countries which is a crucial factor for the success of integration in Africa led by these eight countries.

Keywords: Common; trends; Common; cycles; Co-integration; Monetary; union; Optimum; currency; area; Africa (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:quaeco:v:50:y:2010:i:3:p:245-253

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