Economic integration in Africa
There is a renewed interest in the debate on integration in Africa since the creation of the African Union in 2002. This study investigates the feasibility of a full-fledged economic union in Africa. Towards this goal, we examine the short- and long-term relationships among key macro-variables in eight largest African economies during the period from 1976 to 2005. We observe the existence of common long-term trends in real output, price level, private consumption, government consumption, investment and trade flows among these eight countries. In addition, we observe that there exists common cycles (short-term relationships) in real output, investment and trade flows for these countries. These two critical findings indicate the presence of macroeconomic interdependence among these countries which is a crucial factor for the success of integration in Africa led by these eight countries.
Year of publication: |
2010
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Authors: | Adom, Assandé Désiré ; Sharma, Subhash C. ; Morshed, A.K.M. Mahbub |
Published in: |
The Quarterly Review of Economics and Finance. - Elsevier, ISSN 1062-9769. - Vol. 50.2010, 3, p. 245-253
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Publisher: |
Elsevier |
Keywords: | Common trends Common cycles Co-integration Monetary union Optimum currency area Africa |
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