Regional Market Integration in the SADC region: a Comparative Case Study of Botswana and Zambia

Abstract

Regional market integration is crucial in increasing development for emerging economies. However, research has shown that, in the case of developing countries, the process of market integration faces various obstacles. This study aims to analyse the key determinants of successful market integration for developing countries, as well as to investigate under what conditions some countries may benefit more (or less) than others from market integration, particularly in the SADC region. Based on the existing literature on the main debates and theories on regional market integration of developing countries, this study has used the method of process-tracing to investigate the causal relationship between governance and institutions, market integration and development. The analysis based on this study has found that good and sound policies aimed at increasing domestic capabilities deriving from both public and private governance and institutions is vital in determining relative market integration success. The results indicate that the discrepancies found among SADC Member States hinder the process of regional market integration. On this basis, it is recommended that the linkages between the SADC Member States be strengthened through increased levels of coordination and integration.