## Is Regional Trade Integration a Growth and Convergence Engine in Africa?

_IMF Working Papers, January 29, 2021_

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## Bibliographic details
- Authors: Vigninou Gammadigbe
- Published: January 29, 2021
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513567716.001

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### Summary and objective
- Main objective: Assess whether Regional Trade Agreements (RTAs) stimulate economic growth in participating countries through increased trade, economies of scale, knowledge and technology transfer.
- Empirical scope: Panel data over the period 1979 to 2018.
- Geographic focus: Africa and its major Regional Economic Communities (RECs).

### Methodology
- Empirical approach: Instrumental variable and panel fixed-effects estimation.
- Data period: 1979 to 2018.
- Publication format: IMF Working Paper No. 2021/019, Pages: 39, Volume: 2021, Issue: 019.
- Identifiers: DOI: https://doi.org/10.5089/9781513567716.001; ISBN: 9781513567716; ISSN: 1018-5941; Stock No: WPIEA2021019.

### Key findings
- RTI effect on growth:
  - Regional trade integration (RTI) promotes economic growth in Africa (as shown by instrumental variable and panel fixed-effects estimation).
- RTI effect on income distribution:
  - RTI fosters income divergence across countries, reflecting that gains from regional integration accrue in favor of the more developed economies of the continent.

### Policy implications and recommendations
- To maximize growth effects of the African Continental Free Trade Area (AfCFTA) for all participating countries, the study highlights the importance of:
  - Reducing non-tariff barriers to trade.
  - Improving infrastructure.

### Subject tags and keywords (as provided)
- Subject: Economic integration; Personal income; Plurilateral trade; Regional integration; Trade integration.
- Keywords: Africa; bilateral trade intensity; country pair; economic growth; further trade integration; growth rate; income convergence; trade integration indicator; trade intensity; trade openness; trade openness of the country pair; trade statistics; WP.

*Vigninou Gammadigbe, "Is Regional Trade Integration a Growth and Convergence Engine in Africa?", IMF Working Paper No. 2021/019 (2021).*

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- **Working Paper**
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_Source: https://www.imf.org/en/publications/wp/issues/2021/01/29/is-regional-trade-integration-a-growth-and-convergence-engine-in-africa-50040_