Growth and Regional Trade in Africa: Some Empirical Evidence

Abstract

The formation of regional trade agreements among countries at different levels of economic development poses the question of whether the composition of trade, rather than trade itself, is relevant for growth (Splimbergo, 2000). This question has not been thoroughly and conclusively investigated, especially for trade between developing countries. This paper analyzes the empirical relationship between growth and intra-African trade as observed through an inter-country cross-section. A production function model is specified and estimated using cross-sectional data from 46 African countries for the period 1985-2005.