Abstract
We examine the contribution of domestic and interstates road infrastructures to trade flow between member countries of the Central African Economic and Monetary Community (CEMAC). Theories of international economics as well as those of the new economic geography suggest a positive contribution of both road infrastructures to intraregional trade. A gravity model of international trade is estimated to evaluate this theoretical prediction in the CEMAC zone. Results confirm a positive contribution of interstate road infrastructure to intra-Community trade, but show no evidence of a positive contribution of domestic road infrastructure to intra- CEMAC trade.
Highlights
The Central African Economic and Monetary Community (CEMAC) strikes as being one of the least integrated regional economic communities (RECs) around the world (Avom & Fankem, 2014)
We examine the contribution of domestic and interstates road infrastructures to trade flow between member countries of the Central African Economic and Monetary Community (CEMAC)
Results confirm a positive contribution of interstate road infrastructure to intra-Community trade, but show no evidence of a positive contribution of domestic road infrastructure to intra- CEMAC trade
Summary
The Central African Economic and Monetary Community (CEMAC) strikes as being one of the least integrated regional economic communities (RECs) around the world (Avom & Fankem, 2014). CEMAC is a regional arrangement of six counties: Cameroon, Central African Republic, Chad, the Republic of Congo, Equatorial Guinea and Gabon. Statistics indicate that trade among member countries of this sub-region is limited to a few number of products and has rarely been above 2% of their total trade (UNCTAD, 2015). This performance is relatively low as compared to what can be observed in other RECs in Africa. Petroleum accounts for more than 85 percent of CEMAC’s exports Economies in this zone are vulnerable to commodity cycles and falling in oil prices. Apart from Cameroon, the largest trading partner of the sub-region, CEMAC countries show less diversified economies. Cameroon is considered as the nourishing breast of the sub-region countries given exportations of food products (tomatoes, plantains, fruits and vegetables, beans, etc.) to the other countries
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