IMPACT OF REGIONAL TRADE AGREEMENTS ON ECONOMIC GROWTH IN WEST AFRICA
Keywords:
Trade, Economic, Trade Agreements, and Economic Growth.Abstract
With a focus on two important indicators the export concentration index and import concentration trends this research examines the relationship between trade integration and economic growth within the Economic Community of West African States (ECOWAS). The study looks at how different trade integration strategies affect economic production in ECOWAS states using a static model. The results show that although improvements in import concentration have no impact on economic development, increases in export concentration do. These findings differ from earlier research conducted in other parts of Africa, where it was shown that import and export concentration had a substantial effect on economic development. The report emphasizes how crucial export diversification is to promoting ECOWAS's sustained economic growth. Strong economic development is linked to a greater export concentration index, underscoring the advantages of a diverse, export-focused economy. Based on these observations, the researcher recommends that ECOWAS countries concentrate on investing in manufacturing and services in order to broaden their export base beyond conventional commodities. The research also recommends bolstering the industrial sector and assisting regional business owners in order to lessen dependency on imports.
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