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

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.
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Submitted on : Monday, March 23, 2020 - 4:09:19 PM
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Blaise Gnimassoun. How to Boost the Impact of Intra-African Trade on Income in Africa?. Open Economies Review, Springer Verlag, 2019, 30 (3), pp.541-557. ⟨10.1007/s11079-018-9519-7⟩. ⟨hal-02515843⟩



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