An Empirical Analysis of Integration and Intra-Regional Trade in ECOWAS

Abstract

This study examines integration and intra-regional trade in ECOWAS. It focuses on the benefit of common policies within ECOWAS and their implications for intra-regional trade among member countries. The study utilizes a gravity model that is modified to reflect economic features of ECOWAS. Findings of the research show that economic size and common language are the major drivers of intra-regional trade in ECOWAS. Specifically, it indicates that real GDP, population size, openness and language positively influence intra-regional trade while distance was found to be negatively related to intra-ECOWAS trade. Deepening economic and cultural integration is recommended to maximize the enormous gains accruable from increased intra-regional trade.