Multiple Memberships in Regional Trade Agreements and Intraregional Trade Dynamics in Sub‐Saharan Africa

ABSTRACT Over recent decades, the impact of overlapping regional trade agreements (RTAs) on trade has sparked considerable debate. This study examines the effects of multiple RTA memberships on trade dynamics in Sub‐Saharan Africa (SSA). Analyzing panel data from 43 SSA countries over 22 years (2000–2021) using the Poisson‐Pseudo Maximum Likelihood estimation technique, we find that countries participating in multiple RTAs engage in enhanced bilateral trade within the SSA region. Furthermore, gaining a hub position is positively associated with increased bilateral trade engagement. Our analysis also confirms that network centrality metrics, derived from potential trade connections, are positively related to trade volume. These findings imply that accession to an additional RTA not only creates more opportunities for integration but may also help mitigate politically motivated trade barriers. Moreover, the market access benefits from participating in multiple RTAs appear to outweigh the complexities associated with establishing rules of origin and lengthy trade negotiations. To significantly boost intra‐SSA trade and foster deeper regional integration, policymakers in SSA should prioritize aggressively negotiating and implementing RTAs. Moreover, intraregional trade strategies should prioritize systematically securing hub positions within the regional trade network through RTA membership to maximize trade volumes and drive comprehensive regional integration.

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Publication Details

Journal
African Development Review
Published
2025-04-20
DOI
https://doi.org/10.1111/1467-8268.70013
Primary Topic
Global trade and economics
Type
article
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article

Multiple Memberships in Regional Trade Agreements and Intraregional Trade Dynamics in Sub‐Saharan Africa

Amsalu Dachito Chigeto, M. K. Jayamohan
African Development Review
Global trade and economics
article

Multiple Memberships in Regional Trade Agreements and Intraregional Trade Dynamics in Sub‐Saharan Africa

Amsalu Dachito Chigeto, M. K. Jayamohan
article en

Abstract

ABSTRACT Over recent decades, the impact of overlapping regional trade agreements (RTAs) on trade has sparked considerable debate. This study examines the effects of multiple RTA memberships on trade dynamics in Sub‐Saharan Africa (SSA). Analyzing panel data from 43 SSA countries over 22 years (2000–2021) using the Poisson‐Pseudo Maximum Likelihood estimation technique, we find that countries participating in multiple RTAs engage in enhanced bilateral trade within the SSA region. Furthermore, gaining a hub position is positively associated with increased bilateral trade engagement. Our analysis also confirms that network centrality metrics, derived from potential trade connections, are positively related to trade volume. These findings imply that accession to an additional RTA not only creates more opportunities for integration but may also help mitigate politically motivated trade barriers. Moreover, the market access benefits from participating in multiple RTAs appear to outweigh the complexities associated with establishing rules of origin and lengthy trade negotiations. To significantly boost intra‐SSA trade and foster deeper regional integration, policymakers in SSA should prioritize aggressively negotiating and implementing RTAs. Moreover, intraregional trade strategies should prioritize systematically securing hub positions within the regional trade network through RTA membership to maximize trade volumes and drive comprehensive regional integration.

African Development ReviewVol. 37(2)
Jimma University (ET)
Openalex Percentile: Top 88%
Global trade and economics
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