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The impact of ACP/EU Economic Partnership Agreements on ECOWAS countries: An empirical analysis of the trade and budget effects
... Thus, the present study principally examines the role of the research community in knowledge supply relating to 4IR literacy within the fifteen (15) West African States otherwise referred to as the Economic Community of West African States (ECOWAS) region. The study specifically focuses on the ECOWAS member states because the ECOWAS region has been known for the important developmental role it has played in promoting trade among the members states (Jones, 2002;Zannou, 2010), [13,14] in the integration and economic growth of economies in Africa (Musila, 2005;Diop, Dufrénot, and Sanon, 2010) [15,16] and beyond Africa (Busse, Borrmann, Großmann, and Hamburg, 2004;Lang, 2006). [17,18] The EWOWAS region (West Africa) accounts for about 17% of Africa's total land surface area. ...
... The study specifically focuses on the ECOWAS member states because the ECOWAS region has been known for the important developmental role it has played in promoting trade among the members states (Jones, 2002;Zannou, 2010), [13,14] in the integration and economic growth of economies in Africa (Musila, 2005;Diop, Dufrénot, and Sanon, 2010) [15,16] and beyond Africa (Busse, Borrmann, Großmann, and Hamburg, 2004;Lang, 2006). [17,18] The EWOWAS region (West Africa) accounts for about 17% of Africa's total land surface area. The population of the region is a little more 300 million inhabitants, making it the most populated of the Regional Economic Communities in Africa, or nearly 27% of the total population of Africa. ...
... Since the early 1990s, the issue of the relationship between trade liberalization and tax revenue in developing countries has been at the heart of debate on economic policy (Blejer and Cheasty, 1990;Devarajan and Panagariya, 1994;Ebril et al., 1999;Busse et al., 2004;Agbeyegbe et al., 2004). This debate, guided by the current context marked by the setting-up of free-trade areas and customs unions, predicts a reduction in import duties (Blein et al., 2004). ...
... This debate, guided by the current context marked by the setting-up of free-trade areas and customs unions, predicts a reduction in import duties (Blein et al., 2004). This reduction is expected to negatively affect the total tax revenues of the African Caribbean Pacific (ACP) countries in general and of the Economic Community of West African States (ECOWAS) countries in particular, because the bulk of their tax revenues comes from revenue generated by the customs administration (Busse and al., 2004). Customs revenues are indeed of prime budgetary importance for the ECOWAS countries; they represent more than 20% of the total tax revenues, compared to 2.11% in the United States and 1.64% in the European Union (World Customs Organization, 2014). ...
... Further, quantitative evaluations during the negotiation process were complicated by modifications to EPA country groups, controversies on the actual content and limitations in the data. Early efforts applied partial equilibrium models for single EPA regions or countries due to their lower data requirements (Busse et al., 2004;Milner et al., 2005;Tekere and Ndlela, 2003). The later, more comprehensive CGE models benefited from the release of an updated Global Trade Analysis Project (GTAP) database in 2004-05 and an updated representation of tariff preferences for developing countries (Keck and Piermartini, 2008;Perez, 2006). ...
... Partial equilibrium models concentrate largely on trade effects including trade creation and diversion (Busse et al., 2004;Tekere and Ndlela, 2003) and changes to public tariff revenues, and are generally cautious when it comes to statements on welfare effects (Fontagné et al., 2011). Exceptions are Milner et al. (2005) who performed a simple welfare analysis with mixed results for East African countries, and von Uexkull et al. (2014), who reported positive effects on consumer prices, firm productivity and employment. ...
Economic partnership agreements (EPAs) mark a new era in economic relations between the European Union and African, Caribbean and Pacific (ACP) countries that will lead to reciprocal tariff liberalization. Model‐based impact assessments have become a powerful tool in trade negotiations and mixed results are reported for ACP countries. Given their set‐up within a neoclassical framework, these models neglect important issues such as impacts on employment, macroeconomic balances and adjustment costs. The structuralist computable general equilibrium model applied in this article for three African EPA regions addresses these shortcomings and shows negative macroeconomic and distributional effects and important adjustment costs associated with employment and public revenue losses. These results highlight the importance of policy responses to deliver on promises associated with EPAs, namely sustainable economic development. More generally, they show the importance of alternative models to understand implementation challenges and facilitate broader debates about bilateral trade agreements.
... Un des principaux problèmes actuels réside dans l'ajustement des agendas des différents cycles de négociations : celles de Doha ne seront pas terminées dans les temps alors que pour celles de Cotonou la date butoir de fin 2007 est impérative 5 Dans le cadre de l'OMC, il était reproché à l'accord de Lomé (prédécesseur de celui de Cotonou) de privilégier les pays ACP au détriment de pays au niveau de développement comparable et en particulier des PMA non-ACP. 6 Ces échanges sont aussi à l'origine d'une part non négligeables des recettes budgétaires des Etats ACP de l'ordre de 15% selon Mathias Busse (2004). pour l'UE. ...
Au moment où s’achèvent les négociations sur les accords de partenariat économiques (APE) conformément à l’Accord de Cotonou signé en juin 2000 entre l’Union européenne et les 78 pays d’Afrique, des caraïbes et du pacifique (ACP), les incohérences des principes qui guident ces accords apparaissent au grand jour.
... Thus, the present study principally examines the role of the research community in knowledge supply relating to 4IR literacy within the fifteen (15) West African States otherwise referred to as the Economic Community of West African States (ECOWAS) region. The study specifically focuses on the ECOWAS member states because the ECOWAS region has been known for the important developmental role it has played in promoting trade among the members states (Jones, 2002;Zannou, 2010) in the integration and economic growth of economies in Africa (Musila, 2005;Diop, Dufrénot, & Sanon, 2010) and beyond Africa (Busse, Borrmann, Großmann, & Hamburg, 2004;Lang, 2006). The ECOWAS region has also contributed significantly to the growth of Africa in terms of research outputs (Abodunde & Jegede, 2020; Abodunde, Jegede & Oyebisi, 2020), technology (Bankole, Osei-Bryson & Brown, 2015), Foreign Direct Investment (Eregha, 2012), and the value of the Gross Domestic Product (Abubakar, Kassim & Yusoff, 2015). ...
The study measured the trend of research output relating to the fourth industrial revolution (4IR) in the ECOWAS region
in Africa. It examined the annual growth, the breadth of collaboration and impact of collaboration on the productivity
of research compared to the world average. The study reports the findings of a scientometric study of 4IR knowledge
production culled from the broad field of specialisation in computer science research in all ECOWAS states. This data
were extracted from the Scopus Database using “SciVal” an online analytic tool that allows visualisation of research,
benchmarking for comparison and analysis of strategic partnerships (collaborations) among actors in a research system.
The analysis extracted from the study provided information on volume and growth of knowledge supply regarding 4IR.
It also provided information on the breadth of collaboration by ECOWAS member states on 4IR and the impact of the
collaboration of research productivity of the ECOWAS region.
This paper explores the effects and importance of the EU to developing markets of the world. Using an exploratory method of analysis; the paper recognises that the EU was founded with the aim of establishing a ‘Common Market’ with the ‘four freedoms’ of goods, services, persons, and capital. By aiming for free movement of goods and services, it is proven in the paper that a single market goes beyond a ‘free trade area’ or ‘free trade agreement’, which is predominantly concerned with reducing—and in many cases eliminating—trade tariffs on goods between members. A single market tackles other trade costs—especially non-tariff measures such as licensing and other regulatory barriers to trade. The paper further considers the place of Britain in the EU, and establishes the fact that the EU is important as far as Britain is concerned. It confirms that the EU is the UK’s largest trading partner, comprising around half of all trade. Therefore, the impact of the BREXIT on the UK economy is not farfetched. The paper finally considers the roles of the EU in the ECOWAS by stating that the two regional unions have some common peculiarities. Some of the roles of the EU in nurturing the ECOWAS include: trade and economic structure of ECOWAS, institutional setting and policy coverage, political dialogue, development cooperation, regional integration and trade supports, etc.
This paper summarizes the arguments and counterarguments within the scientific discussion on the weak growth of labor productivity in poor but open economies. The main purpose of the research is to estimate the welfare effects of the reciprocal preferential trade liberalization between Sub-Saharan Africa and the industrialized countries, taking into account the differences in labor productivity between the two trading blocs. Systematization literary sources and approaches for solving the problem of estimating the impacts of trade liberalization indicate that both trading partners shall benefit from trade liberalization assuming that their labor productivity growth rates are the same or remain unchanged. The relevance of the decision of this scientific problem is that the difference in labor productivity growth rates may grow over time and lead to inaccurate estimates of trade impacts on which many poor households’ welfare hangs. Investigation of the topic of trade liberalization and labor productivity nexus in this paper employs a General Equilibrium modeling framework relying on GTAP Data Base with eight aggregated sectors and thirteen aggregated regions. We analyze several scenarios based on different productivity growth paths under reciprocal tariff elimination. Methodological tools of the research methods were the results of seven years of research on modeling, data gathering and projection. The object of research is the impact of the negotiated reciprocal preferential access between the industrialized countries and Sub-Saharan Africa markets, because such preferential access permits the study of how the growing differences in labor productivity growth affect trade between poor and rich countries. The results show that Sub-Saharan Africa would lose about USD 12.6 billion per year if the region continues to trade under its current, low growth rates of labor productivity; the welfare losses occur mainly in Sub-Saharan Africa’s manufacturing sector. Elimination of reciprocal tariff with the European Union would cut the loss but only by USD 1.2 billion. The loss would be further cut by USD 2 billion if SubSaharan Africa agreed to a reciprocal tariff with not just the European Union, but all the industrialized countries. These gains, albeit significant, remain largely insufficient to cover the USD 12.6 billion loss. Our estimates suggest that Sub-Saharan Africa requires at minimum a sustained 3 per cent growth rate of labor productivity per year in its manufacturing sector to generate positive allocative efficiency and endowment effects from trade with the industrialized countries. The research empirically confirms and theoretically proves that trade liberalization is not a panacea for welfare improvement. If poor countries want to benefit fully from reciprocal preferential trade liberalization, they need to improve on their labor productivity. The results of the research can be useful for trade negotiation and pacts between poor and rich countries and especially for providing tools to help poor countries measure how much efforts and which sector they need to devote and target in order to achieve greater benefits from trade.
Keywords: labor productivity, reciprocal trade preference, trade policies, Sub-Saharan Africa, welfare.
JEL Classification: F13, F66, O6.
The relationships between globalization, foreign direct investment (FDI), and exports (trade) have been the subject of in-depth studies leading to mixed and inconclusive results. This study investigates how globalization and FDI influence and affect export, as well as the responsiveness of exports to globalization shocks in the West African ECOWAS region over the period 1980–2014. To investigate these phenomena, the study uses Panel VAR, cointegration methods and long-run estimation methods to estimate the short-run, cointegration and long-run relationships, as well as the responsiveness of export shocks due to economic globalization and FDI. The Panel VAR and Granger causality test results showed that there is a positive and significant effect as well as a causal relationship between economic globalization, non-export GDP, and short-term exports. Further, the study also shows that there is no significant effect and no causal relationship between FDI and exports in the short-run, but, FDI has a positive and significant relationship with export in the long-run in the ECOWAS region. The cointegration and long-run analysis showed the existence of cointegration and a long-run relationship between exports and the regressors included in this study.
An important issue in applied economics is the extent to which trade flows adjust to changes in income, relative prices, and exchange rates. This work surveys the literature on the empirical estimation of the demand for imports and exports for the US. The book is designed to be a reference book for both academic international economists and international trade practitioners in government, international organizations, and the private sector.
Advocates of global economic integration hold out utopian visions of the prosperity that developing countries mill reap if they open their borders to commerce and capital. This hollow promise diverts poor nations' attention and resources from the key domestic innovations needed to spur economic growth.
Este estudio ofrece un apoyo teorico a ciertas practicas de investigacion segun las cuales a la variacion en una corriente determinada de intercambio entre paises se la considera como la suma de dos componentes: la variacion que ocurriria si un pais vendedor dado mantuviera su participacion en el mercado, y la desviacion de las ventas efectivas con respecto a las ventas que tendrian lugar de permanecer constantes las participaciones. Dichas practicas incluyen la prevision de los intercambios, en la cual 1) los pronosticos del crecimiento en diversos mercados, junto con la matriz de un periodo de base, resultan en una matriz de participaciones constantes para el periodo futuro, y 2) se modifica esta matriz de participaciones constantes para tener en cuenta a los factores que se espere que produzcan perdidas o ganancias en las participaciones. En este trabajo se mantiene que el analisis de las variaciones en las corrientes de intercambio comercial, separando el componente de participaciones constantes y el de ajuste de las participaciones, es mas que una simple cuestion de contabilidad, y en realidad se le puede ligar sencilla y rigurosamente a la teoria tradicional del comportamiento del consumidor. El punto de partida es el supuesto de que se establecen distinciones no solamente segun la clase de los productos sino tambien segun el lugar de produccion de los mismos. Es decir, se supone que los productos de distintos paises que compiten en el mismo mercado son sustitutos imperfectos. Se demuestra luego que una especializacion eficaz y bastante realista de la funcion hicksiana del bienestar lleva a relaciones de demanda muy sencillas en las que se incluyen los componentes de la participacion constante y del ajuste de las participaciones. Esta especializacion exige el supuesto de "independencia" (que formularan R. M. Solow, R. H. Strotz, et al.) y el supuesto de que las elasticidades de sustitucion entre los productos que compiten en un mercado determinado son constantes e iguales.
The Armington substitution elasticity is a key parameter for trade-policy analysis. We estimate short- and long-run Armington elasticities for 309 manufacturing industries at the four-digit Standard Industrial Classification (SIC) level over the period 1989–1995. Our estimation results offer a comprehensive, disaggregated, and up-to-date set of Armington elasticities. On average, long-run estimates are approximately two times larger than the short-run estimates, which is important since long-run estimates are more appropriate for most trade-policy analysis. Also, statistically significant differences exist within most three-digit SIC categories, which highlights the importance of estimation at a disaggregated level.
World Development Indicators, the World Bank's respected statistical publication presents the most current and accurate information on global development on both a national level and aggregated globally. This information allows readers to monitor the progress made toward meeting the goals endorsed by the United Nations and its member countries, the World Bank, and a host of partner organizations in September 2001 in their Millennium Development Goals. The print edition of World Development Indicators 2005 allows you to consult over 80 tables and over 800 indicators for 152 economies and 14 country groups, as well as basic indicators for a further 55 economies. There are key indicators for the latest year available, important regional data, and income group analysis. The report contains six thematic presentations of analytical commentary covering: World View, People, Environment, Economy, States and Markets, and Global Links.