Unpacking External Constraints on Africa’s Continental Free Trade Ambitions

Leon Mayeko

Accounting and Finance Research, 2025, vol. 14, issue 4, 19

Abstract: This article examines whether the creation of a continental free trade area benefits all African countries, using an analysis of external constraints. By employing error-correction models estimated via ordinary least squares throughout 1981 to 2017, the study reveals that several sub-Saharan African nations experience persistent trade deficits, indicating the presence of external constraints. Moreover, countries with fragile currencies are particularly vulnerable to exchange rate volatility.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:jfr:afr111:v:14:y:2025:i:4:p:19

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