An empirical analysis of African trade blocs effects on the global economy: new evidence from the gravity model

Abstract This study employs the gravity model to estimate the extent of the contribution of six African trade blocs to the global economy using the gravity model spanning from 1980 to 2018. The gravity equation that models the export contributions of the six selected African RECs to the global expor...

Descripción completa

Guardado en:

Detalles Bibliográficos
Autores principales:	David Oluseun Olayungbo, Badar Alam Iqbal
Formato:	article
Lenguaje:	EN
Publicado:	SpringerOpen 2021
Materias:	African trade blocs COMESA EAC ECCAS SACU SADC Business HF5001-6182 Finance HG1-9999
Acceso en línea:	https://doaj.org/article/cd945d8871ab4594920539d0af43c5f1
Etiquetas:	Agregar Etiqueta Sin Etiquetas, Sea el primero en etiquetar este registro!

id	oai:doaj.org-article:cd945d8871ab4594920539d0af43c5f1
record_format	dspace
spelling	oai:doaj.org-article:cd945d8871ab4594920539d0af43c5f12021-11-07T12:14:52ZAn empirical analysis of African trade blocs effects on the global economy: new evidence from the gravity model10.1186/s43093-021-00089-22314-7210https://doaj.org/article/cd945d8871ab4594920539d0af43c5f12021-11-01T00:00:00Zhttps://doi.org/10.1186/s43093-021-00089-2https://doaj.org/toc/2314-7210Abstract This study employs the gravity model to estimate the extent of the contribution of six African trade blocs to the global economy using the gravity model spanning from 1980 to 2018. The gravity equation that models the export contributions of the six selected African RECs to the global export is estimated. The estimated gravity model reveals that the long run estimations show that the coefficient estimate for SACU and ECCAS are insignificant in the long run while SACU, EAC and ECCAS as RECs, have insignificant contribution to export in the short run. Our findings, after establishing cointegration, on the other hand show that COMESA has the highest contribution to the global exports, followed by EAC, ECOWAS and SADC with ECCAS and SACU the lowest contributors. The highest contribution of COMESA followed by EAC may be due to the growing economy of member countries like Kenya and Rwanda, while that of COMESA and SADC may be as a result of the large economy of Nigeria and South Africa respectively. This study concludes that African countries are emerging with great export potentials, therefore, governments and private sectors should create the necessary incentives and export policies for the realization of these potentials to maximise the global value chain.David Oluseun OlayungboBadar Alam IqbalSpringerOpenarticleAfrican trade blocsCOMESAEACECCASSACUSADCBusinessHF5001-6182FinanceHG1-9999ENFuture Business Journal, Vol 7, Iss 1, Pp 1-11 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	African trade blocs COMESA EAC ECCAS SACU SADC Business HF5001-6182 Finance HG1-9999
spellingShingle	African trade blocs COMESA EAC ECCAS SACU SADC Business HF5001-6182 Finance HG1-9999 David Oluseun Olayungbo Badar Alam Iqbal An empirical analysis of African trade blocs effects on the global economy: new evidence from the gravity model
description	Abstract This study employs the gravity model to estimate the extent of the contribution of six African trade blocs to the global economy using the gravity model spanning from 1980 to 2018. The gravity equation that models the export contributions of the six selected African RECs to the global export is estimated. The estimated gravity model reveals that the long run estimations show that the coefficient estimate for SACU and ECCAS are insignificant in the long run while SACU, EAC and ECCAS as RECs, have insignificant contribution to export in the short run. Our findings, after establishing cointegration, on the other hand show that COMESA has the highest contribution to the global exports, followed by EAC, ECOWAS and SADC with ECCAS and SACU the lowest contributors. The highest contribution of COMESA followed by EAC may be due to the growing economy of member countries like Kenya and Rwanda, while that of COMESA and SADC may be as a result of the large economy of Nigeria and South Africa respectively. This study concludes that African countries are emerging with great export potentials, therefore, governments and private sectors should create the necessary incentives and export policies for the realization of these potentials to maximise the global value chain.
format	article
author	David Oluseun Olayungbo Badar Alam Iqbal
author_facet	David Oluseun Olayungbo Badar Alam Iqbal
author_sort	David Oluseun Olayungbo
title	An empirical analysis of African trade blocs effects on the global economy: new evidence from the gravity model
title_short	An empirical analysis of African trade blocs effects on the global economy: new evidence from the gravity model
title_full	An empirical analysis of African trade blocs effects on the global economy: new evidence from the gravity model
title_fullStr	An empirical analysis of African trade blocs effects on the global economy: new evidence from the gravity model
title_full_unstemmed	An empirical analysis of African trade blocs effects on the global economy: new evidence from the gravity model
title_sort	empirical analysis of african trade blocs effects on the global economy: new evidence from the gravity model
publisher	SpringerOpen
publishDate	2021
url	https://doaj.org/article/cd945d8871ab4594920539d0af43c5f1
work_keys_str_mv	AT davidoluseunolayungbo anempiricalanalysisofafricantradeblocseffectsontheglobaleconomynewevidencefromthegravitymodel AT badaralamiqbal anempiricalanalysisofafricantradeblocseffectsontheglobaleconomynewevidencefromthegravitymodel AT davidoluseunolayungbo empiricalanalysisofafricantradeblocseffectsontheglobaleconomynewevidencefromthegravitymodel AT badaralamiqbal empiricalanalysisofafricantradeblocseffectsontheglobaleconomynewevidencefromthegravitymodel
_version_	1718443516558835712

An empirical analysis of African trade blocs effects on the global economy: new evidence from the gravity model

Ejemplares similares