The Effects of the Economic Partnership Agreements on the ACR Countries’ Foreign Trade

Issac Danadji and Jean-Claude Kouladoum
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Issac Danadji: Higher Teacher Training College of N'Djamena
Jean-Claude Kouladoum: University of Sarh, Chad

Review of Applied Socio-Economic Research, 2021, vol. 21, issue 1, 05-15

Abstract: The aim of this paper is to measure the impact of the 2008 Economic Partnership Agreements between the European Union and the countries of Africa, the Caribbean and the Pacific on the bilateral creation of trade. To achieve this goal, the gravity model seems to be the most suitable. It has been associated with this model the econometric tool that is the panel data estimation technique. The databases used are from secondary sources and come from the United Nations Conference on Trade and Development (UNCTAD) and the Center for Prospective Studies and International Information (CEPII). The analysis period is from 2000 to 2016. The results show that the Economic Partnership Agreement has a positive and significant effect on trade between the two economic blocks even after controlling the variable of interest by other variables.

Keywords: Economic Partnership, Agreements, Countries’ Foreign TradeJEL Classification: F13, F 151. IntroductionFree trade agreements play a very important role in the development of international trade (Smith, 1776; Ricardo, 1817). In effect, any country needs to exchange with the rest of the world given their factorial and material differential. However, this exchange is often confronted with barriers erected between states within the context of protectionism, which limits the volume of exchanges between economies. On the contrary, the intensification of commercial fluxes comes with an economic integration between regions 2 Corresponding author Email: kouladoum@gmail.com, Tel +235 66 32 59 06, P.O Box.105, Sarh, Chad (search for similar items in EconPapers)
JEL-codes: F13 F15 (search for similar items in EconPapers)
Date: 2021
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