Analysis of the impact of economic integration of regional trade in African countries

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.