AN EMPIRICAL INVESTIGATION INTO THE BENEFITS OF REGIONAL INTEGRATION FROM COMESA FOR ZAMBIA

Abstract

Purpose: The world at large in the last three to four decades has shown greater impetus for regionalism, from Europe’s EU, South America’s MERCOSUR, Southeast Asia’s ASEAN, North America’s NAFTA and Africa’s numerous RECs among which eight are recognized as building blocks for the now AfCFTA among others. While for other parts of the world, the driving force to regionalism may be different, for Africa, Pan Africanism and African Renaissance have been the push forces behind regionalism. This study therefore took interest to look at the benefits of belonging to a REC, with the ultimate objective of empirically investigating the benefits of COMESA’s integration for Zambia’s growth for the period 1975-2017.Methodology: Using a variable that represented the presence of integration and time series data, the ordinary least squares (OLS) technique was estimated to establish significance and relevance of integration on growth. Findings: The findings among others revealed that the variable representing integration had no significant effect on long-run GDP growth, FDI and trade. However, it did have a significant effect on investment. On the other hand, the findings of the analysis of COMESA programmes being implemented in Zambia revealed that Zambia largely benefits from COMESA, citing among others the infrastructure development of four of the five border posts shared by Zambia and its neighbours.Contributions to theory, policy and practice: The study recommends that Zambia and indeed all COMESA Member States refrain from the use of Non-Tariff Barriers (NTBs) and Technical Barriers to Trade (TBTs). Additionally, Safeguard Measures must be sought for countries seeking to protect their infant domestic industries and adherence to the NTBs and TBTs resolution framework under COMESA. These if unchecked have a potential of undermining the benefits Member States can obtain from COMESA integration.