This study assesses the impact of economic integration on regional trade in African countries from 1980 to 2023. Employing a panel Generalized Method of Moments (GMM) technique, we analyzed trade patterns and integration policies using data from World Development Indicator (WDI), the findings reveal a negative associa- tion between economic integration and regional trade, suggesting that integration efforts may not be achieving the desired increase in regional trade. Economic inte- gration may cause trade diversion, leading countries to import from less efficient regional producers, thus reducing overall trade volume. Non-tariff barriers and structural similarities among economies can limit the benefits of integration. Ad- ditionally, political tensions and external factors like global economic downturns can further inhibit trade growth. Thus, the need to reassess existing economic in- tegration policies and address challenges of infrastructural deficiencies and policy inconsistencies. Key policy actions include harmonizing trade policies, investing in infrastructure, strengthening institutions, promoting regional value chains, and en- hancing monitoring. Inclusive stakeholder engagement is vital to make integration efforts more effective and trade driven.
Abdullahi et al. (Mon,) studied this question.
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