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Abstract

This paper uses spatial dynamic panel data approach to analyze the extent to which regional integration processes in Africa has been able to generate economically-integrated space in which economic growth in one country spurs economic growth in its trading partners. The results indicate that the continent as a whole is indeed a spatially integrated economic space, although of a weak proportion compared to advanced economies. To the extent that proximity has more to do with bilateral trade than geographical distance, the results also point to a great deal of heterogeneity, as there is a positive growth spillover effect in regional groupings such as SADC, COMESA and ECOWAS, which happen to register larger intra-regional trade shares, but none in ECCAS and AMU. These results are a welcome addition into the debate over the relevance of a continent-wide free trade agreements and how they could foster inclusive and sustainable development for African economies.

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