Title: The African Continental Free Trade Area and the trade facilitation agreement: some regional macroeconomic impacts

Authors: Patrice Rélouendé Zidouemba; Mustapha Sadni Jallab

Addresses: Rural Development Institute, University of Bobo-Dioulasso, 01 BP 1091 Bobo-Dioulasso 01, Burkina Faso ' United Nations Institute for Economic Development and Planning, Economic Commission for Africa, Rue du 18 Juin, BP 3186, CP 18524, Dakar, Senegal

Abstract: This contribution analyses the potential impacts of the African Continental Free Trade Area (AfCFTA) and the positive role played by the Trade Facilitation Agreement (TFA) to augment its impact. We provide empirical evidence that expected trade flows and real GDP growth from the AfCFTA are relatively significant but are amplified by the TFA. In addition, the impacts on trade and economic growth are stronger when the TFA is extended to trade flows with non-African regions. More interestingly, all African regions experience an increase in exports of industrial and intermediate goods, which constitutes a catalyst for industrialisation and structural economic transformation.

Keywords: AfCFTA; African Continental Free Trade Area; TFA; Trade Facilitation Agreement; economic diversification; industrialisation; structural transformation.

DOI: 10.1504/IJTGM.2021.115723

International Journal of Trade and Global Markets, 2021 Vol.14 No.3, pp.325 - 337

Received: 02 Dec 2019
Accepted: 03 Sep 2020
Published online: 18 Jun 2021 *

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