Economic growth effects of de facto and de jure trade globalization in ECOWAS
Raymond Kofi Adjei, Libor Grega
Keywords:
trade globalization, de facto, de jure, economic growth, ECOWAS
Abstract:
This paper examines the dynamics of trade globalization by analysing and comparing the
economic growth effect of overall trade globalization with the growth effects of de facto and
de jure trade globalization in the economic community of west African states (ECOWAS).
Using fixed effects and random effects models, we separate the de facto measure of trade
globalization from the de jure measure to prove that de facto trade globalization significantly
and positively contributes to economic growth in ECOWAS, whereas de jure trade
globalization does not. We also use pooled mean group estimates to prove that the growth effect
of de facto trade globalization is significant only in the short run. By implication, relying only
on the results of overall trade globalization can be misleading for policymakers, considering
that the de facto and de jure measures of trade globalization yield different growth results. The
findings of this study can aid policymakers within the region in identifying proper measures
and tailoring trade policies to gain reasonable competitive advantage among other economic
communities.
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 10.7441/joc.2023.02.02
Adjei, R.,K. & Grega, L. (2023). Economic growth effects of de facto and de jure trade globalization in ECOWAS. Journal of Competitiveness, 15(2), 18-35. https://doi.org/10.7441/joc.2023.02.02
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