Impact of International Trade Competitiveness on Unemployment and Poverty Reduction in ECOWAS Region

Abstract

This study investigates the impact of trade competitiveness on unemployment and poverty in the ECOWAS region. The study relied on POLS, FE, and RE techniques to analyze the impact of export value and trade openness on unemployment and poverty in the ECOWAS region from 2001 to 2020. Annual time series data were sourced from World Bank and World Integrated Trade Solution databases. Major findings from this study show that unemployment responds strongly and favorably to export value and trade openness, whereas poverty responds favorably to trade openness. Further investigation revealed that trade regulatory environment is a determinant of unemployment and poverty in the ECOWAS region. This paper concludes that international trade competitiveness is a key determinant of unemployment and poverty reduction in the ECOWAS region and recommends in favor of an effective harmonization of trade regulations amongst ECOWAS member countries to eliminate policy-distorting tendencies, thereby allowing maximization of the impact of trade competitiveness in reducing unemployment and poverty in the ECOWAS region.