Potential impacts of free trade areas and common currency on sustainable agricultural export in Africa

Abstract

This study probes the potential impacts of free trade areas and common currency in fostering agricultural export based on data from 45 countries in Africa from 1996 to 2018. The main concern is to determine whether exogenous events like becoming a member of Arab Mighreb (AMU), Community of Sahel-Saharan States (CS-SS), Common Market for Eastern and Southern Africa (COMESA), East African Community (EAC), Economic Community of Central African States, Intergovernmental Authority on Development (IGAD), Economic Community of West African States (ECOWAS), Southern African Development Community (SADC) or becoming a member of African Continental Free Trade Area (AFCFTA) can potentially accentuate agricultural export. From the main finding, there is evidence that membership becoming membership to AMU, CS-SS, AMU, CEN-SAD, COMESA, EAC, ECCAS, ECOWAS, IGAD or part of SADC has a positive marginal impact on agricultural export, its influence is not immediate. Also, the positive marginal impact on agricultural export for becoming a member of AFCFTA continues to decline after 1 or 2 years than the current year. Common currency and economic growth have a positive marginal impact on agricultural export for the period covered by the study.