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Article

Open Access

Ivory Coast Intra Regional Trade: The Role of Infrastructure and Economic Environment

Author(s)

FE Doukouré Charles

Full-Text PDF Download XML 669 Views

DOI:10.17265/2328-7144/2017.06.011

Affiliation(s)

National School of Statistics and Applied Economics; Economic Policy Analysis Unit of the Ivoirian Center of Economic and Social Research, Abidjan, Ivory Coast

ABSTRACT

Intra-regional trade dynamic can foster economic integration with a contribution of the lead economy. In that way, infrastructure and economic environment play an important role in expanding trade by reducing trade costs. This paper examines the role of infrastructure and the economic environment on Ivory Coast intra-regional trade. The study performs a transformed and advanced gravity model, using panel data over the period 1996 to 2013, modelling exports of Ivory Coast. The analysis shows exports towards the other member states of West African Economic and Monetary Union (WAEMU) depend significantly on the availability of transport and communication infrastructures developed as well as variables such as Gross Domestic Product growth, economic similarity within countries, Foreign Direct Investment (FDI) net inflows in Ivory Coast. Estimations point out that indeed, the level of economic growth in the other member countries, Foreign Direct Investment (FDI) net inflows in Ivory Coast, the number of mobile phone subscribers per 100 inhabitants in Ivory Coast and the proportion of paved roads, have a positive impact on Ivory Coast intra-regional trade.

KEYWORDS

intra-regional trade, infrastructure, economic environment, transformed gravity model

Cite this paper

Economics World, Nov.-Dec. 2017, Vol. 5, No. 6, 595-607 doi: 10.17265/2328-7144/2017.06.011

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