The impact of free trade and institutional quality on Economic Community of West African States trade

Regional and Economic integration has become an essential issue for Economic Community of West African States (ECOWAS). Despite the abundant research done on regional trade and its determinants, little has been done to examine the impact of free trade and institutional quality, particularly for ECOW...

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Main Author:	Olanrewaju, Afolabi Luqman
Format:	Thesis
Language:	eng eng
Published:	2017
Subjects:	HF1-6182 Commerce
Online Access:	https://etd.uum.edu.my/7202/1/s95503_01.pdf https://etd.uum.edu.my/7202/2/s95503_02.pdf
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id	my-uum-etd.7202
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Abu Bakar, Nor Aznin Azman Aziz, Mukhriz Izraf
topic	HF1-6182 Commerce
spellingShingle	HF1-6182 Commerce Olanrewaju, Afolabi Luqman The impact of free trade and institutional quality on Economic Community of West African States trade
description	Regional and Economic integration has become an essential issue for Economic Community of West African States (ECOWAS). Despite the abundant research done on regional trade and its determinants, little has been done to examine the impact of free trade and institutional quality, particularly for ECOWAS, one of the most corrupt, less governed and politically unstable regions on the globe. The main objective of this research is to critically examine the impact of free trade and institutional quality on ECOWAS from 1985 to 2013 using gravity model of trade. Panel Unit Root were employed in order to test for stationarity of the series, Panel Cointegration was employed to test for long run relationship, Poisson Pseudo Maximum Likelihood Fixed Effect (PPML), and Dynamic Instrumental Generalized Method of Moments System and First Differenced (DGMM) were also employed to test further for long run relationship. The results indicate that ECOWAS is a regional force. High political instability and feeble governance have hindered ECOWAS trade performance over the years. Although trade openness and the old colonial and historical ties of ECOWAS have spurred regional trade inflows, financial openness has had a negative and significant impact on ECOWAS regional trade. The study suggests that ECOWAS must address the feeble institutional quality within the region; also, they need to proceed further to the next stage of integration in order to enhance trade, economic growth and development. The results highlight the fundamental significance of properly accounting for endogeneity and heterogeneity bias when trade policy effects are being evaluated.
format	Thesis
qualification_name	Ph.D.
qualification_level	Doctorate
author	Olanrewaju, Afolabi Luqman
author_facet	Olanrewaju, Afolabi Luqman
author_sort	Olanrewaju, Afolabi Luqman
title	The impact of free trade and institutional quality on Economic Community of West African States trade
title_short	The impact of free trade and institutional quality on Economic Community of West African States trade
title_full	The impact of free trade and institutional quality on Economic Community of West African States trade
title_fullStr	The impact of free trade and institutional quality on Economic Community of West African States trade
title_full_unstemmed	The impact of free trade and institutional quality on Economic Community of West African States trade
title_sort	impact of free trade and institutional quality on economic community of west african states trade
granting_institution	Universiti Utara Malaysia
granting_department	School of Economics, Finance & Banking
publishDate	2017
url	https://etd.uum.edu.my/7202/1/s95503_01.pdf https://etd.uum.edu.my/7202/2/s95503_02.pdf
_version_	1747828172556075008
spelling	my-uum-etd.72022021-08-18T05:32:33Z The impact of free trade and institutional quality on Economic Community of West African States trade 2017 Olanrewaju, Afolabi Luqman Abu Bakar, Nor Aznin Azman Aziz, Mukhriz Izraf School of Economics, Finance & Banking School of Economics, Finance and Banking HF1-6182 Commerce Regional and Economic integration has become an essential issue for Economic Community of West African States (ECOWAS). Despite the abundant research done on regional trade and its determinants, little has been done to examine the impact of free trade and institutional quality, particularly for ECOWAS, one of the most corrupt, less governed and politically unstable regions on the globe. The main objective of this research is to critically examine the impact of free trade and institutional quality on ECOWAS from 1985 to 2013 using gravity model of trade. Panel Unit Root were employed in order to test for stationarity of the series, Panel Cointegration was employed to test for long run relationship, Poisson Pseudo Maximum Likelihood Fixed Effect (PPML), and Dynamic Instrumental Generalized Method of Moments System and First Differenced (DGMM) were also employed to test further for long run relationship. The results indicate that ECOWAS is a regional force. High political instability and feeble governance have hindered ECOWAS trade performance over the years. Although trade openness and the old colonial and historical ties of ECOWAS have spurred regional trade inflows, financial openness has had a negative and significant impact on ECOWAS regional trade. The study suggests that ECOWAS must address the feeble institutional quality within the region; also, they need to proceed further to the next stage of integration in order to enhance trade, economic growth and development. The results highlight the fundamental significance of properly accounting for endogeneity and heterogeneity bias when trade policy effects are being evaluated. 2017 Thesis https://etd.uum.edu.my/7202/ https://etd.uum.edu.my/7202/1/s95503_01.pdf text eng public https://etd.uum.edu.my/7202/2/s95503_02.pdf text eng public Ph.D. doctoral Universiti Utara Malaysia Abidin, I. S. Z., Bakar, N. A. A., & Sahlan, R. (2013). The Determinants of Exports between Malaysia and the OIC Member Countries: A Gravity Model Approach., 5(0), 12-19. doi: http://dx.doi.org/10.1016/S2212-5671(13)00004-X Acemoglu, D., & Johnson, S. (2003). Unbundling Institutions: National Bureau of Economic Research, Inc. Acemoglu, D., Johnson, S., & Robinson, J. (2004).Institutions as the Fundamental Cause of Long-Run Growth: National Bureau of Economic Research, Inc. Acemoglu, D., Johnson, S., & Robinson, J. (2001). The Colonial Origins of Comparative Development: An Empirical Investigation. 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