Intermediate Tariffs and Intraregional Exports in Ecowas

Abstract:

This paper analyses the impact of intermediate tariffs on intraregional intermediate exports within the Economic Community of West African States (ECOWAS) from 2000 to 2015. This is in order to investigate whether or not the levels of intermediate tariffs bode well for trade integration in ECOWAS and by extension regional value chains. Using the Heckman Two-step technique, empirical estimates show that intermediate tariff is not a significant driver of intraregional intermediate exports in ECOWAS. As the African continent prepares towards the implementation of the African Continental Free Trade Area, trade policies targeted at lowering intermediate tariffs within the ECOWAS’ regional economic community is called for.

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