Financial Development, Trade Costs and Bilateral Trade Flows: Connecting the Nexus in ECOWAS

Osabuohien, E. S. C. and Odebiyi, John and Efobi, Uchenna and Fayomi, Oluyemi Oyenike (2017) Financial Development, Trade Costs and Bilateral Trade Flows: Connecting the Nexus in ECOWAS. ResearchGate.

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Abstract

Financial Development (FD) in both exporting and importing countries would be required to fund production and consumption, respectively. However, the extent to which this affects Economic Community of West African States-ECOWAS intra-regional trade, has not been empirically investigated, which motivates this study. It examines the pattern of trade, provides the level of FD and influence of FD in ECOWAS. It utilises the augmented gravity model of trade to empirically examine the effects of FD on bilateral trade flows in ECOWAS. To achieve the objectives, descriptive and econometric methods of analysis were engaged. Notable among the findings is that the FD of both exporting and importing countries are significant determinants of bilateral trade flows in ECOWAS. This suggests, among others, that more credit available to the private sector will significantly boost bilateral trade flows.

Item Type:	Article
Subjects:	H Social Sciences > HF Commerce > HF5601 Accounting H Social Sciences > HG Finance J Political Science > JA Political science (General)
Divisions:	Faculty of Law, Arts and Social Sciences > School of Humanities Faculty of Law, Arts and Social Sciences > School of Management
Depositing User:	Mrs Patricia Nwokealisi
Date Deposited:	22 Sep 2017 11:09
Last Modified:	22 Sep 2017 11:09
URI:	http://eprints.covenantuniversity.edu.ng/id/eprint/9403

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