Journal of African Trade

Volume 2, Issue 1-2, December 2015, Pages 19 - 50

The potential for internal trade and regional integration in Africa

Authors
Alemayehu Gedaa, *, AG112526@gmail.com, Edris Hussein Seidb
aDepartment of Economics, Addis Ababa University, Ethiopia
bThe Horn Economic and Social Policy Institute, Ethiopia
* Corresponding author.
Corresponding Author
Alemayehu GedaAG112526@gmail.com
Received 7 March 2014, Revised 5 February 2015, Accepted 21 April 2015, Available Online 2 September 2015.
DOI
10.1016/j.joat.2015.04.001How to use a DOI?
Keywords
Intra-Africa trade potential; Gravity model; Export supply constraints; Regional integration; Africa
Abstract

This study examines the potential for intra-Africa trade and the prospects of advancing regional economic integration through such trade. A variety of empirical models are deployed for the purpose. The analysis and model simulation results reveal the existence of significant potential for intra-Africa trade. However, realizing this potential and hence the effort to advance regional integration through intra-Africa trade is challenged by lack of complementarities of exports and imports as well as the relative competitive position of African potential export suppliers. This is the result of weak infrastructure, productivity and trade facilitation — in short, acute export supply constraint that characterizes the African export trade. This calls for an innovative approach to enhance intra-Africa trade and furthering regional integration. Addressing the challenge of export supply constraint, export competitiveness and diversification is found to be crucial. This in turn calls for policies that need to go beyond liberalization to actual realization of the potential for trade through provision of regional (multi-country) and domestic infrastructures, harmonizing macroeconomic policies, enhancing trade enabling institutions, developing trade facilitation as well as regionally focused diversification plan using the existing regional economic communities (RECs) as vehicles.

Copyright
© 2015 Afreximbank. Production and hosting by Elsevier B.V. All rights reserved.
Open Access
This is an open access article under the CC BY-NC license (http://creativecommons.org/licences/by-nc/4.0/).

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Journal
Journal of African Trade
Volume-Issue
2 - 1-2
Pages
19 - 50
Publication Date
2015/09/02
ISSN (Online)
2214-8523
ISSN (Print)
2214-8515
DOI
10.1016/j.joat.2015.04.001How to use a DOI?
Copyright
© 2015 Afreximbank. Production and hosting by Elsevier B.V. All rights reserved.
Open Access
This is an open access article under the CC BY-NC license (http://creativecommons.org/licences/by-nc/4.0/).

Cite this article

TY  - JOUR
AU  - Alemayehu Geda
AU  - Edris Hussein Seid
PY  - 2015
DA  - 2015/09/02
TI  - The potential for internal trade and regional integration in Africa
JO  - Journal of African Trade
SP  - 19
EP  - 50
VL  - 2
IS  - 1-2
SN  - 2214-8523
UR  - https://doi.org/10.1016/j.joat.2015.04.001
DO  - 10.1016/j.joat.2015.04.001
ID  - Geda2015
ER  -