DETERMINANTS OF TRADE INTENSIFICATION WITH FILLS GAP OF GENDER-SPECIFIC INDICATORS IN ECOWAS COUNTRIES

Abstract

The purpose of this paper is to study the determinants of trade openness in ECOWAS countries and fills the gap of gender-specific indicators. The sample is composed of the 15 ECOWAS countries and covers the period from 2004 to 2018. For this purpose, we used three panel data estimation techniques, such as pooled regression, fixed effects model and Generalized Moment Method (GMM). The results of this study reveal that among the significant variables for all three techniques used, FDI represent the variable that positively influences trade openness of ECOWAS countries while variables such as population growth rate and GDP per capita negatively influence the degree of trade openness. Variables such as GDP per capita, population growth rate, labor force participation rate, political stability index, cost of starting a business, and population density were used as determinants for determinants of trade openness estimation. Result discovered that identification of policies to promote FDI and the implementation of measures to increase production is essential to cover the consumption needs of the population of ECOWAS countries. In addition, it would be beneficial for these countries to put in place an export policy for manufactured products other than primary materials in order to promote the expansion of intra-ECOWAS trade.