How to Boost the Impact of Intra-African Trade on Income in Africa?

Blaise Gnimassoun

Open Economies Review, 2019, vol. 30, issue 3, No 6, 557 pages

Abstract: Abstract Regional trade integration is viewed by both international institutions and local political leaders as a key tool for promoting inclusive growth and reducing poverty in Africa. However, several structural weaknesses in African economies undermine trade integration and inhibit its income-enhancing effect. This paper aims to study the conditional effects of intra-African trade openness on the standard of living in Africa by highlighting the influence of these structural weaknesses. Our results clearly show that the impact of intra-regional trade on income depends on the diversification of African economies, their financial development and the quality of their transport and telecommunications infrastructures. Specifically, we find that a substantial improvement in these fundamentals would make intra-African trade significantly income-enhancing.

Keywords: Income per capita; Trade; Economic integration; Africa (search for similar items in EconPapers)
JEL-codes: E64 F14 F15 O55 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s11079-018-9519-7

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