Trade Liberalization and Export Competitiveness: Evidence from the EU-ECOWAS Trade

Ofei, Edmund Okraku (2016): Trade Liberalization and Export Competitiveness: Evidence from the EU-ECOWAS Trade.

Abstract

This study investigates the impact of EU trade liberalisation on the export competitive ness of ECOWAS countries. Trade liberalisation is captured by import tariffs in the EU market whiles export competitiveness is captured by the export value of ECOWAS countries. The study uses the gravity model, fixed and random effects as well as the Hausman test for a country pair panel data of 15 ECOWAS and EU 15 countries for the period beginning 1995 to 2014. The study finds a positive impact of trade liberalisation on export competitiveness and estimates the export value of ECOWAS countries to increase by 0.487% for every 1% reduction of import tariffs in the EU.

• Item Type: MPRA Paper
• Language: English
• Keywords: export competitiveness, trade liberalisation, EPA, panel data, gravity model,fixed effects, random Effects, hausman test.
• Subjects: C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C23 - Panel Data Models ; Spatio-temporal Models; F - International Economics > F1 - Trade; F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations; F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade; F - International Economics > F1 - Trade > F15 - Economic Integration; F - International Economics > F1 - Trade > F17 - Trade Forecasting and Simulation; F - International Economics > F6 - Economic Impacts of Globalization; F - International Economics > F6 - Economic Impacts of Globalization > F63 - Economic Development; O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O24 - Trade Policy ; Factor Movement Policy ; Foreign Exchange Policy; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O52 - Europe; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O55 - Africa

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