How Does International Trade Cum Regional Integration Affect Economic Growth? Insights from African Countries

The need to re-engineer growth in Africa has become increasingly glaring in the face of the prevailing economic shocks that exposed its inadequate productivity power for basic and vital food and drugs. According to the World Bank and several other international agencies, the potential for international trade, especially regional integration, remains huge. Theoretical literature supports this assertion, but the contradictory results from empirical studies necessitate employing robust techniques to reassess this relationship, especially as Africa engages in a continental trade agreement. This motivates the paper to assess the separate and joint effects of regional integration and international trade on economic growth. The study employed the System General Method of Moments (S-GMM) dynamic panel model for 40 selected countries across Africa. The findings show that regional integration and international trade, jointly and separately, impact positively and significantly on economic growth. The results provide empirical justification for a continuous push for regional integration and international trade for the attainment of economic growth in Africa.