Democracy and Intra-Africa Trade

Comp Econ Stud. 2023 Jan 11:1-21. doi: 10.1057/s41294-022-00204-4. Online ahead of print.

Abstract

Despite numerous efforts by policymakers, trade among African countries remains abysmal. In this paper, we investigate whether democracy influences intra-Africa trade of goods. Using the gravity model on bilateral trade among 48 Sub-Sahara African countries over the period 2000 to 2018, we find that democracy fosters intra-Africa goods trade. This effect is more pronounced in the manufacturing sector. Reversals to autocracy, however, adversely impact intra-Africa trade flows. Our paper therefore highlights democratic development as an important channel for accelerating trade among African countries.

Keywords: Democracy; Gravity model; Intra-Africa trade.