Growth Spillovers Effects Through Trade in Africa: A Spatial Econometric Approach

Idrissa Yaya Diandy

Working Papers from African Economic Research Consortium

Abstract: This research purposed to assess the regional impact of growth induced by intra regional trade in Africa from 2001 to 2015. Indeed, there is not much literature on the impact of trade on neighbouring countries in the same regional integration area. In addition, the methods used so far do not allow explicitly handling these spillovers. Recent developments in spatial analysis allow reconsidering these aspects at theoretical and methodological levels. The standard dynamic panel approach shows that intra-regional trade has no impact on growth in Africa. In contrast, estimates of the spatial model reveal the existence of growth spillover effects related to trade between countries. In addition, these effects are larger at the sub-regional level, demonstrating that African trade remains more regional than continental.

Date: 2021-09-17
Note: African Economic Research Consortium
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Persistent link: https://EconPapers.repec.org/RePEc:aer:wpaper:6877f0f5-0dfa-4be7-b151-5bc146d861d7

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