An examination into the quality of regional trade institutions: The economic community of West African states (ECOWAS); a historical, theoretical and modelling perspective

Abstract

This thesis examines the determinants of institutional quality and the process of convergence in the ECOWAS in order to inform policy about the region’s deep integration scheme. The first part of the thesis examines the historical changes that took place in the development of common institutions in West Africa in the pre-independence era. The findings demonstrated that the region exhibited some common institutions, including common currencies, standardised trade rules and protection of trade routes which facilitated regional and international trade. A single administration system helped in the effective implementation of the common institutions. Therefore, historical changes after independence led to the loss of some facets of these common institutions in West Africa. The second part examined determinants of institutional quality and the process of convergence using econometric analysis. The findings demonstrated that the process of convergence could be accelerated if WAMZ and WAEMU work together as one monetary zone under ECOWAS. Moreover, the findings also demonstrated that the level of development, state capacity, FDI, regional trade, history and regional trade partners institutional quality contain useful information in explaining the quality of institutions today. Therefore, ECOWAS’s deep integration goal would require improving some of these factors in order to facilitate the process of developing common institutions and improve their quality. In the long term, a single administration system akin to the colonial era and the Empires of Western Sudan would be desirable. This will require political commitment to do so. ECOWAS members should have the confidence that deep integration is feasible given that it existed in the region in the past.