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Determinants of Trade Flow in the Economic Community of Central African States (ECCAS): Does Governance Matter?

Author

Listed:
  • Olaifa Felix Gbenga

    (Economics Department, Kwara State University, Malete, Nigeria)

  • Olubiyi Ebenezer Adesoji

    (Economics Department, Federal University of Agriculture, Abeokuta, Nigeria)

  • Benjamin Oluwasegun Olawale

    (Research and Data Analysis Department, Lightway Research and Technology Center, Nigeria)

Abstract

Subject and purpose of work: This study analyzes the determinants of intra-ECCAS trade, with special attention paid to the role of institutional quality from 1996 to 2021. Materials and methods: The study conducts descriptive analysis and utilizes a Negative Binomial Pseudo Maximum Likelihood to analyze the determinants of intra-ECCAS trade. Results: The results suggest that gross domestic product (GDP), population, time taken for export shipment in the exporting countries and the bilateral real exchange rate of the importing partner country enhance intra-ECCAS trade flow. On the other hand, distance, two trading partners being landlocked, time for importing countries and bilateral real exchange rate of the exporting partner discourage this. Furthermore, the findings reveal that institutions are vital to intra-ECCAS trade. Conclusions: T he key d rivers of intra-ECCAS t rade a re GDP, population, t ime t aken for export shipment in the exporting countries, bilateral real exchange rate of the importing partner country, and institutions’ quality measures.

Suggested Citation

  • Olaifa Felix Gbenga & Olubiyi Ebenezer Adesoji & Benjamin Oluwasegun Olawale, 2024. "Determinants of Trade Flow in the Economic Community of Central African States (ECCAS): Does Governance Matter?," Economic and Regional Studies / Studia Ekonomiczne i Regionalne, Sciendo, vol. 17(1), pages 78-97, March.
    • Handle: RePEc:vrs:ecoreg:v:17:y:2024:i:1:p:78-97:n:4
    DOI: 10.2478/ers-2024-0004
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    More about this item

    Keywords

    bilateral trade; ECCAS; gravity model; institutions; NBPML; trade facilitation;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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