Ibadan Journal of the Social Sciences
Volume 7, No. 1, 2009
Pages 17-32
DOI: 10.36108/ijss/9002.70.0120
Removing Obstacles to Intra-African Trade
Abiodun S. Bankole
E. Olawale Ogunkola
Department of Economics, Trade Policy Research and Training Programme, University of Ibadan
Abstract
This paper addresses issues related to the elimination of the obstacles which hinder the growth of intra-African trade. It shows that lack of productivity, inadequate use of factors and low human capital which are components of natural endowment impinge intra-African exports through the region’s inadequate supply capacity. Apart from these relationships which provide an explanation for the concentration of African exports in primary commodities, the high proportion of electricity transmission and distribution losses and import duties imposed on African counties adversely contribute to African counties’ export growth and supply response, while the improvement of communications infrastructure provided some impetus.
Keywords: Intra-African trade, export supply response capacify, macroeconomic environment, panel estimation, transaction costs