An Evaluation of Intra-Trade Potential in Economic Community of West African States (ECOWAS)

Abstract

Single currency for West Africa countries has been revered as the solution to a great deal of the sub region’s problems. Attentions of past and present government have been the champion of the introduction of single currency. Top of the reason for the proposed adoption of single currency is to improve intra regional trade. The study employs the gravity model in panel Dynamic Ordinary Least Square (DOLS) to empirically investigate the size of intra-trade potential within West Africa within the gravity model framework. It examines bilateral potential in ECOWAS using time series data from 1980 to 2010. The study observed substantial intra-trade potential between the two monetary unions. The study recommends that ECOWAS diversify its export base and deepen integration not only economic but cultural to improve intra-trade.