Different Stages of Regional Integration and Economic Growth: Going Beyond Intra-Trade

Abstract

The levels of trade integration among African countries are relatively low because of many challenges. It widely accepted the regional economic communities (RECs) may play a vital role in improving the intra-African trade. However, the African RECs also experience challenges due to overlapping memberships, pursuing national interest, heavy dependence on commodities, poor infrastructure development, etc. These challenges hinder the performance of the region and its mitigation is beneficial for the continent. The study aims to investigate the intra-African trade and associated regional problems. Then expand beyond trade integration by measuring the effects of various integration types on the African regional integration. This study goes beyond the usual norm of trade integration, it incorporates different integration categories and quantifies their effects. To attain this goal, study employed multiple regression analysis. The results of the study reflected that integration components impact African regional integration performance. The study also used the hierarchical cluster analysis method to determine similar groups of African countries based on the determinants of African regional integration. Three clusters were created, and South Africa was an outlier, while other clusters dominated by North Africa and East and West African countries.

Keywords: