African Continental Free Trade Area: What lessons can be learned from the regional integration experience of ECOWAS? Evaluation using the gravity model.

Abstract

This article proposes a study of the determinants of intra-ECOWAS trade at the dawn of African continental integration. The gravity model and panel data are used to analyze the impacts of commercial environment, trade facilitation, logistics environment, customs efficiency, and institutional opacity on intra-community trade. The results indicate that (i) the positive influence of the free trade agreement on intra-community exports is mitigated by the inadequacy of the commercial environment. (ii) Structural reforms of around 5% could stimulate intra-community and transnational trade by more than 25% and 134.68%, respectively. (iii) The impacts of sub-environments vary depending on destinations, and the institutional environment is a key reform axis to stimulate international exports, while the customs environment is a priority for intra-community trade.