Qualitative research shows informal trade impacts regional integration in Ghana, suggesting stronger regulations are needed.
Informal cross-border trade networks play a significant role in regional economic integration within ECOWAS (Economic Community of West African States). Ghana is an important case study for understanding these dynamics, given its strategic position and diverse economy. Qualitative research methods will be employed, including semi-structured interviews with traders, focus group discussions, and document analysis of trade-related policies and regulations. Data triangulation techniques will be used to enhance validity. The study reveals that informal cross-border trade networks are predominantly driven by small-scale entrepreneurs who operate across borders without formal documentation. These networks contribute significantly to the local economy but also pose challenges in terms of tax evasion and lack of regulatory oversight. While informal trade networks provide economic benefits, they undermine efforts towards regional integration due to their unregulated nature. The findings suggest that strengthening legal frameworks and enhancing cross-border cooperation are crucial for effective integration within ECOWAS. Ghana should advocate for the implementation of stricter regulatory measures to address tax evasion and improve transparency in informal trade networks. Additionally, fostering collaboration between national governments and international organizations could help streamline regional integration processes.
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Afriyie et al. (2001) studied this question.
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