Informal cross-border trade networks are significant in facilitating economic integration within regional organizations such as ECOWAS (Economic Community of West African States). However, these networks have not been extensively studied in their impact on regional integration processes in specific member states like Ethiopia. The study employs a qualitative approach, drawing on interviews with key informants from Ethiopian businesses operating across borders and analysing existing literature on regional economic cooperation in Africa. A detailed analysis revealed that informal trade networks play a crucial role in facilitating cross-border transactions, particularly for small and medium-sized enterprises (SMEs) within the ECOWAS region. This has led to significant growth in Ethiopia's exports to neighboring countries. The findings suggest that while formal integration mechanisms are essential, informal trade networks contribute significantly to economic growth and regional connectivity by overcoming bureaucratic hurdles and fostering closer economic ties. Policy makers should consider promoting a more inclusive framework that recognizes the importance of informal trade networks in facilitating cross-border commerce. This could include easing regulations for SMEs and enhancing infrastructure connectivity. Informal Cross-Border Trade, ECOWAS, Regional Integration, Ethiopia, Economic Growth
Woldetadewa et al. (Tue,) studied this question.