Department of Economics and Business Economics

Revisiting the effect of regional integration on African trade: evidence from meta-analysis and gravity model

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Revisiting the effect of regional integration on African trade : evidence from meta-analysis and gravity model. / Afesorgbor, Sylvanus Kwaku.

In: Journal of International Trade and Economic Development, Vol. 26, No. 2, 2017, p. 133-153.

Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaperJournal articleResearchpeer-review

Harvard

Afesorgbor, SK 2017, 'Revisiting the effect of regional integration on African trade: evidence from meta-analysis and gravity model', Journal of International Trade and Economic Development, vol. 26, no. 2, pp. 133-153. https://doi.org/10.1080/09638199.2016.1219381

APA

CBE

MLA

Afesorgbor, Sylvanus Kwaku. "Revisiting the effect of regional integration on African trade: evidence from meta-analysis and gravity model". Journal of International Trade and Economic Development. 2017, 26(2). 133-153. https://doi.org/10.1080/09638199.2016.1219381

Vancouver

Author

Afesorgbor, Sylvanus Kwaku. / Revisiting the effect of regional integration on African trade : evidence from meta-analysis and gravity model. In: Journal of International Trade and Economic Development. 2017 ; Vol. 26, No. 2. pp. 133-153.

Bibtex

@article{fc0357ff45aa48ddb9555f33cf3b1b3a,
title = "Revisiting the effect of regional integration on African trade: evidence from meta-analysis and gravity model",
abstract = "Two main shortcomings flaw the estimation of gravity model in previous studies that examined the trade-creating effects of African Regional Trade Agreements (RTAs). First, these studies fail to account for the multilateral resistance term. This omission makes the estimates from standard gravity model bias and inconsistent. Second, there is a significant proportion of zero trade flows, however, these studies also fail to account for them properly. They use either the Tobit model or replace zero flows with arbitrary small values. Apart from these problems, they also exhibit considerable heterogeneity in the RTA effects on trade. In this paper, a meta-analysis of previous empirical studies is conducted to derive a combined effect size and also to explain the heterogeneity. In addition, I use the gravity model to compare the trade-creating effect of the main African RTAs. Using the gravity model, I compare the estimation methods of previous studies to the Poisson pseudo-maximum-likelihood estimator that tackles the zero flows. From the meta-analysis, I find a general positive effect of African RTAs of about 27%-32%. A comparative assessment of the RTAs using gravity model shows a striking heterogeneity.",
keywords = "Africa, regional integration, regional trade, meta-analysis, gravity model, ECONOMIC-INTEGRATION, INTERNATIONAL-TRADE, AGREEMENTS, LOG, HETEROGENEITY, ECOWAS, IMPACT, COMESA",
author = "Afesorgbor, {Sylvanus Kwaku}",
year = "2017",
doi = "10.1080/09638199.2016.1219381",
language = "English",
volume = "26",
pages = "133--153",
journal = "Journal of International Trade and Economic Development",
issn = "0963-8199",
publisher = "Taylor & Francis Online",
number = "2",

}

RIS

TY - JOUR

T1 - Revisiting the effect of regional integration on African trade

T2 - evidence from meta-analysis and gravity model

AU - Afesorgbor, Sylvanus Kwaku

PY - 2017

Y1 - 2017

N2 - Two main shortcomings flaw the estimation of gravity model in previous studies that examined the trade-creating effects of African Regional Trade Agreements (RTAs). First, these studies fail to account for the multilateral resistance term. This omission makes the estimates from standard gravity model bias and inconsistent. Second, there is a significant proportion of zero trade flows, however, these studies also fail to account for them properly. They use either the Tobit model or replace zero flows with arbitrary small values. Apart from these problems, they also exhibit considerable heterogeneity in the RTA effects on trade. In this paper, a meta-analysis of previous empirical studies is conducted to derive a combined effect size and also to explain the heterogeneity. In addition, I use the gravity model to compare the trade-creating effect of the main African RTAs. Using the gravity model, I compare the estimation methods of previous studies to the Poisson pseudo-maximum-likelihood estimator that tackles the zero flows. From the meta-analysis, I find a general positive effect of African RTAs of about 27%-32%. A comparative assessment of the RTAs using gravity model shows a striking heterogeneity.

AB - Two main shortcomings flaw the estimation of gravity model in previous studies that examined the trade-creating effects of African Regional Trade Agreements (RTAs). First, these studies fail to account for the multilateral resistance term. This omission makes the estimates from standard gravity model bias and inconsistent. Second, there is a significant proportion of zero trade flows, however, these studies also fail to account for them properly. They use either the Tobit model or replace zero flows with arbitrary small values. Apart from these problems, they also exhibit considerable heterogeneity in the RTA effects on trade. In this paper, a meta-analysis of previous empirical studies is conducted to derive a combined effect size and also to explain the heterogeneity. In addition, I use the gravity model to compare the trade-creating effect of the main African RTAs. Using the gravity model, I compare the estimation methods of previous studies to the Poisson pseudo-maximum-likelihood estimator that tackles the zero flows. From the meta-analysis, I find a general positive effect of African RTAs of about 27%-32%. A comparative assessment of the RTAs using gravity model shows a striking heterogeneity.

KW - Africa

KW - regional integration

KW - regional trade

KW - meta-analysis

KW - gravity model

KW - ECONOMIC-INTEGRATION

KW - INTERNATIONAL-TRADE

KW - AGREEMENTS

KW - LOG

KW - HETEROGENEITY

KW - ECOWAS

KW - IMPACT

KW - COMESA

U2 - 10.1080/09638199.2016.1219381

DO - 10.1080/09638199.2016.1219381

M3 - Journal article

VL - 26

SP - 133

EP - 153

JO - Journal of International Trade and Economic Development

JF - Journal of International Trade and Economic Development

SN - 0963-8199

IS - 2

ER -