Impact of Infrastructure on Trade: An Empirical Assessment by the Gravity Model in ECOWAS
Increased trade is nowadays seen as one of the channels that can boost economic growth in ECOWAS. However, we are witnessing a relative decline in intra ECOWAS trade. This relative weakness in intra African trade is said to be due to trade barriers and obstacles. Notably, the quality of infrastructure and transport costs that reduce trade flows in Africa. In this paper, we have tried to understand the impact of infrastructure quality on trade in ECOWAS countries by referring to the gravity model. Estimates show that bilateral trade increases as the quality of infrastructure improves. Also, the results show that the value of bilateral trade increases with the size of the economies. Overall, geographical and structural factors have a decisive impact on intra regional trade.