Regional Integration and Attractiveness of African Countries: A Semiparametric Empirical Approach

This study aimed at examining the nonlinear effects of regional integration on economic attractiveness in Africa. Based on data spanning 2000–2020 over 30 countries in Africa, and through a semiparametric approach, findings revealed that regional integration strongly enhances the country’s attractiveness in Africa. This influence is more pronounced in countries with lower public spending and weaker currencies. Moreover, the Hardle and Mammen test’s results revealed an inadequacy of a fully parametric model. These results suggested strategic membership to economic blocs, and the awareness by monetary authorities of attractive indirect benefits from currency depreciation while achieving regional integration goals.