Economies of Scale, Domestic Divergences, and Potential Gains from Economic Integration in Ghana and the Ivory Coast

Pearson, Scott R.; Ingram, William D.

doi:10.1086/260918

Cited by 38 publications

(5 citation statements)

References 7 publications

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“…Spilimbergo (2000), for example, argues that South-South trade integration could inhibit growth by changing the composition of trade in favor of lowtechnology goods or goods with little learning-by-doing. The empirical studies of the impact of market integration on growth in select African countries or regional economic zones have produced mixed results (see, for example, Pearson and Ingram, 1980;Webaze and Ijjo, 2015;Okoro et al, 2020). The varying theoretical and empirical positions are partly the motivation of the present inquiry.…”

Section: : P 41)mentioning

confidence: 94%

“…The few empirical studies that examine the growth effects of the market integration of African countries have focused on select countries or specific regional economic zones. Pearson and Ingram (1980) analyze the impact of regional economic integration on the performance of Ghana and Cote d'Ivoire economies and conclude that integration effort has not resulted in economies of scale. Webaze and Ijjo (2015) examine the growth effects of COMESA integration scheme and find no significant empirical support for positivegrowth effect.…”

Section: Literature Reviewmentioning

confidence: 99%

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South–South Trade and Economic Growth: Panel Data Evidence from Africa’s Market Integration

Musila

Yiheyis

2023

Preprint

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Policymakers in the South have initiated several regional trading schemes in the last four decades aimed at increasing South-South trade, believing that it will help achieve rapid economic growth and development. Although many analysts have examined the effect of regional trade arrangements on South-South trade, little is known about the impact of South-South trade on economic growth of the member states. This paper uses panel data for the period 1995-2020 to estimate the impact of intra-African trade on economic growth of 42 African countries. Using residual trade openness as instruments and PMG-ARDL-VEC estimation approach, we obtain positive and statistically significant long run relationship between growth of real GDP per capita and the proxy for intraAfrican merchandise trade intensity. We also obtain a positive and significant long run relationship between growth and proxiesfor extra-African merchandise trade openness and total trade openness. Although the results suggest that both regional and multilateral trade expansion can help spur Africa’s growth, the impact of extra-African merchandise trade on growth is, however, relatively higher than that of intra-African merchandise trade. Besides trade, we also find our proxies for physical and human capital accumulation to have significant and positive influences on real GDP per capita growth. JEL: C33, F15, O47, O55

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Section: : P 41)mentioning

confidence: 94%

Section: Literature Reviewmentioning

confidence: 99%

South–South Trade and Economic Growth: Panel Data Evidence from Africa’s Market Integration

Musila

Yiheyis

2023

Preprint

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“…nontraditional products can contribute to the transformation Of so-called infant industries, which are frequently a burden on public resources, into industries that are more likely to be internationally competitive (e.g., Pearson and Ingram 1980).…”

Section: Imperfect Competition Scale Economies and Differentiated Goodsmentioning

confidence: 99%

Regional Integration Arrangements: Static Economic Theory, Quantitative Findings, and Policy Guidelines

DeRosa¹

1999

Policy Research Working Papers

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The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the view of the World Bank, its Executive Directors, or the countries they represent.

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“…Unfortunately, institutions in developing countries in general, and in Africa in particular, don't function very well. In fact, some studies of market integration in Africa have concluded that integration effort has not resulted in economies of scale for member states (see Pearson and Ingram (1980) Most empirical studies of the relation between regional market integration and growth have focused more on North-North market integration (especially the European integration) than on South-South market integration. In general, however, the evidence is mixed or weak in some cases.…”

Section: Introductionmentioning

confidence: 99%

South–South Trade and Economic Growth: Panel Data Tests of Africa’s Market Integration

Musila

Yiheyis

2022

Preprint

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Policymakers in the South have initiated several regional trading schemes in the last four decades aimed at increasing South-South trade believing that it will help achieve rapid economic growth and development. Although many analysts have examined the impact of regional trade arrangements on South-South trade, little is known about the impact of South-South trade on economic growth of the member states. This paper uses panel data for the period 1996-2018 to estimate the impact of intra-African trade on economic growth of 47 African countries. Applying the instrumental variable – fixed effects and Driscoll – Kraay standard errors estimation approach, we obtain negative and statistically significant relationships between real GDP per capita growth and the various measures of intra-African trade intensity. Our empirical results suggest that the gain to African countries is higher with multilateral trade expansion than with only an expansion of intra-African trade. Besides trade, we also find that traditional factors such as rate of investment and institutional quality have significant and positive influences on real GDP per capita growth. JEL: C33, F15, O47, O55

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Economies of Scale, Domestic Divergences, and Potential Gains from Economic Integration in Ghana and the Ivory Coast

Cited by 38 publications

References 7 publications

South–South Trade and Economic Growth: Panel Data Evidence from Africa’s Market Integration

South–South Trade and Economic Growth: Panel Data Evidence from Africa’s Market Integration

Regional Integration Arrangements: Static Economic Theory, Quantitative Findings, and Policy Guidelines

South–South Trade and Economic Growth: Panel Data Tests of Africa’s Market Integration

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