Record Details

Analysis of Bilateral Trade in UEMOA: The Implication of Trade Effects

African Journal of Economic Policy

View Archive Info
 
 
Field Value
 
Title Analysis of Bilateral Trade in UEMOA: The Implication of Trade Effects
 
Creator Salisu, A
Ademuyiwa, I
 
Subject Trade, Gravity model, UEMOA, Trade creation, Panel data
 
Description This study evaluated the implications of trade effects on bilateral trade analyses drawing evidence from UEMOA. Consequently, it provided three main innovations: augmentation of the gravity model (GM hereafter) to include Kelejian et al (2012) type of trade effects, among others; employed a more generalised GM proposed by Salisu et al. (2012) which accounted for all possible dimensions of trade effects; and examined the implications of ignoring these effects on bilateral trade models. Like the previous literature, it showed that economic size, geographical and political factors were the major drivers of bilateral trade in UEMOA. In addition, following from the augmented GM, it noted that UEMOA was trade creating. Contrarily, the results from the generalised GM revealed that UEMOA was trade diverting. Based on the diagnostic tests, the latter evidence seemed more reliable than the former. Therefore, ignoring these dimensions of trade effects in bilateral trade analysis when they exist may yield biased and inconsistent results.2Keywords: Trade, Gravity model, UEMOA, Trade creation, Panel dataJEL Classification: F15, F33, C23.
 
Publisher Department of Economics, University of Ibadan
 
Contributor —
 
Date 2014-02-26
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.ajol.info/index.php/ajep/article/view/101521
10.4314/ajep.v20i2.
 
Source African Journal of Economic Policy; Vol 20, No 2 (2013); 65-87
1116-4875
 
Language eng
 
Relation http://www.ajol.info/index.php/ajep/article/view/101521/90712
 
Rights Copyright for articles published in this journal is retained by the journal.