Abstract
M.Com.
This study has three objectives: Firstly, it asks whether regional trade agreements (RTAs) have
contributed to increased trade in Africa. If so, it asks, secondly, if the effects of RTAs are
instantaneous or if they manifest over time. Finally, the study provides an empirical assessment
of the possible benefits of multiple memberships in RTAs. The research uses a battery of
methods consisting of heteroscedastic-consistent Ordinary Least Square (OLS), Poisson Pseudo-
Maximum Likelihood (PPML) and Random Effect (RE). The data used for this study is a panel
spanning 1995 to 2014. In an attempt to control for time trend, the study in the same framework
also contributes to the question whether the benefit of the regional trade agreements (RTAs) all
happen instantaneously or gradually over time. The results of the findings suggest that indeed
RTAs may enhance trade in many but not all cases and that multiple memberships in RTAs have
significant trade-enhancing advantages for member countries. The policy significance of this is
that though RTAs may enhance trade, it is only the second best compared to complete
integration of the continent. With the exception of SACU, EAC, CSSS and UEMOA, there
seems to be no evidence of long-term benefits from membership in other RTAs. However, this
does not suggest an absence of gradual benefit but perhaps lack of progress in many of the
RTAs to advance to total integration.