The role of economic stability in boosting exports in COMESA: Threshold effects analysis

The Common Market for Eastern and Southern Africa (COMESA) treaty was signed by member states of the Preferential Trade Area for Eastern and Southern Africa in November 1993. The Council monitors COMESA activities, including supervision of the Secretariat, recommends policy direction and development, and reports to the Authority. In March 2009 a Regional Association of Energy Regulators for Eastern and Southern Africa was initiated; this comprised 13 full member states by 2021. An Eastern Africa Power Pool has been established by COMESA, comprising Burundi, the DRC, Djibouti, Ethiopia, Kenya, Sudan, Tanzania and Uganda, as well as Libya and Tanzania. In January 2003 the Association of Regulators of Information and Communication for Eastern and Southern Africa was launched, under the auspices of COMESA. A COVID-19 Regional Food and Nutrition Security Response Plan was formulated by the COMESA Secretariat in 2020, with the aim of improving regional agricultural productivity, access to markets, and trade in agri-food commodities.

Regional Integration (RI) has been a growing phenomenon in the last decades because the benefits associated with it, particularly in terms of trade. Despite the benefits, the issue of Non-Tariff Barriers (NTBs) has become a major concern, thus triggering a number of trade disputes among nations. To improve trade relationship with one another, three African regional trade blocs, namely, Common Market for Eastern and Southern Africa (COMESA), East African Community (EAC) and the Southern African Development Council (SADC) entered into an agreement to form a single market through launch of a grand Tripartite Free Trade Area (FTA). An important issue that followed this agreement was the use of an On-line Complaint Reporting, Monitoring and Eliminating Mechanism starting in year 2009 and formally launched in June 2011. This mechanism was meant to enhance transparency and easy follow-up of reported and identified NTBs from participating members and would possibly reduce complaints. Despite this launch, a review of the website indicates surfacing of new NTBs and even some recurrence previously reported ones. The online reporting mechanism has become a paradox. Complaints have continued to proliferate in different forms, hence NTBs that destabilize the objective of realising free trade in the COMESA, EAC and SADC area. Trust Theory is used to help understand the main cause/source of many complaints and the resultant NTBs. The subsequent implication of these NTBs on the status of trade among the concerned economies also needs investigation. Complaints registered on-line in COMESA, EAC and SADC Website from 2009 to 2017, are used as data for the study . This paper, contributes to knowledge by enabling understanding of trust in regional integration literature and future prospects of this on-line reporting mechanism.

Background: The study was undertaken due to high levels of poverty in the COMESA region. It endeavoured to explore the contribution by COMESA towards the elimination of poverty using Agriculture and Rural development strategies. The objective of the study was to establish the contribution of COMESA in the fight against poverty in Zambia through Agriculture and rural development. The study employed qualitative approach with an exploratory research design and critical case sampling to choose 13 key informants to explore the contribution of COMESA in the fight against poverty in Zambia. Primary data was used from 13 key informants selected purposively using an interview guide to support secondary data. Data was analysed using thematic and content analysis. The study established that COMESA had been significant in the fight against poverty in Zambia. The Comprehensive Africa Agriculture Development Programme (CAADP) supported Zambia’s agricultural development policy formulation and implementation amongst others, establishing clear commitment to deliver on investing 10 percent of national budgets in the agricultural sector and achieving a six percent growth in agricultural domestic product. It was established that Zambia had worked with Alliance for Commodity Trade in Eastern and Southern Africa (ACTESA) through mobilisation of small-scale farmers in partnership with private and public institutions in regularising policy on staple foods, through policy outreach and research, creating market access, and building the capacity of the small-scale farmers to enable them compete in the domestic, regional and international markets. The study further established that Zambia’s livestock development received support from COMESA Livestock Unit which supported efforts aimed at driving sustainable livestock production and productivity, value addition and access to markets in the COMESA region. The Market Linkages Initiative (MLI) supported the ACTESA Secretariat and also focused on promoting growth in food staples trade in Zambia to ensure food security. Zambia through the COMESA Regional Agro-Inputs Programme (COMRAP) implemented by the Alliance for Commodity Trade in Eastern and Southern Africa (ACTESA) in Zambia contributed to the improvement of rural household food security and livelihoods. The Integrated Production and Pest Management Programme (IPPM) became active in Zambia since 2014 and is an implementation mechanism of the support programme for the consolidation of the action framework under the European Union-Africa Partnership on Cotton. The study recommended that the Comprehensive Africa Agriculture Development Programme should be strengthened as it continues to support investment in agricultural development in Zambia particularly enhancing support to small-scale farmers.

The people of Asia and Africa share a common destiny, that is, to improve their lives and determine their place within the global community of nations through joint action, based on reliance on their resources and collective strength. Recent developments in the rapidly evolving global trading system, especially the formation and consolidation of formidable trading blocs, leave Africa and Asia with little choice but to commit themselves more firmly to regional co-operation and integration. This article examines inter-regional co-operation between these two regions, specifically between the South Asian Association for Regional Co-operation (SAARC) and the Common Market for Eastern and Southern Africa (COMESA). Based on the assumption that enhanced bilateral co-operation is a prerequisite for extending and deepening inter-regional co-operation, this article highlights the economic relations between India and the COMESA countries as a model for enhanced co-operation between these two regions in the future.

Local Economic Development (LED) has attracted global recognition as a response to local challenges such as imbalanced economic growth, intra-regional investment, lack of trade diversification, domestic infrastructure constraints, financial inclusion, labour shortage, and political–economic constraints. In light of the recent global development initiatives, including the United Nation’s Sustainable Development Goals, the need to stimulate economic growth in contemporary societies such as the Southern African Development Community (SADC) region cannot be overestimated. As such, LED backing is constantly on the development agenda. The LED practice within the SADC is informed by the Regional Indicative Strategic Development Plan 2015–2020. This plan aims to enhance economic collaboration in the region in order to address the existing socio-economic development imperatives and has paved the way for several LED alternatives in order to promote socio-economic development within the African cities in the region. These initiatives include the SADC- Common Market for Eastern and Southern Africa (COMESA)-East African Community (EAC) Free Trade Area, African Continental Free Trade Area (AfCFTA), SADC Industrialisation Strategy and Roadmap, and African Development Bank (AfDB). The paradigmatic shift in LED approaches at a regional level confer a prominent role within African cities.

The study demonstrates that informal cross-border is a complex phenomenon and not uniform across the region, or even through border posts of the same country. However, the overall volume of trade, duties paid and VAT foregone, as well as the types of goods and where they are produced, indicate that this sector of regional trade should be given much greater attention and support by governments of the region as well as regional organizations such as the Common Market for Eastern and Southern Africa (COMESA), SADC and the Southern African Customs Union (SACU).

The Role of Regional Judiciaries in Eastern and Southern Africa

Chirundu One Stop Border Post (OSBP) programme was initiated by the Common Market for Eastern and Southern Africa (COMESA) bloc. It was launched in 2009 with the aim of meeting international border management standards. The agreement to run the border post was signed by the Governments of Zimbabwe and Zambia in 2009. The major objective of the study was: To assess the impact of the Chirundu OSBP in addressing barriers that constrained the flow of people and goods. The study provides some recommendations that are useful in promoting effective operation of the Chirundu OSBP. The author noted that there are few studies that link border management with trade protectionism, yet border management is fundamental for the development of Zimbabwe’s political economy. The paper was being discussed in the framework of the trade facilitation concept. The study employed three major research methods namely: interviews, observations and documentary search. DOI: 10.5901/mjss.2015.v6n6s2p11

On the 10th of June 2015 the heads of state of three Regional Economic Communities in Africa, the Common Market for Eastern and Southern Africa (COMESA), the East African Community (EAC) and the Southern African Development Community (SADC), signed a declaration launching the biggest Free Trade Area (FTA) in Africa as well as opening a Tripartite FTA Agreement (The Agreement) for signature. The Tripartite FTA has the potential to open up a market comprising more than half the population of Africa with a Gross Domestic Product (GDP) of USD 1.3 Trillion as at 2014 which was roughly 58 % of Africa’s GDP.

This paper aims to empirically test the impact of the relationship between the rules concerning the protection of employees and the unemployment rate. The aim is to answer the question of whether there is a positive or negative relationship between stricter employment protection regulation and unemployment, and whether it is statistically significant. The methodology used is from the panel data analysis of the multifactorial regression model with fixed and random effects and the generalized method of moments (GMM) model. Fella (2000) and the Organisation for Economic Co-operation and Development (OECD, 2004), find that any tightening of regulations regarding the protection against individual dismissals of 1 percent, measured through the indicator of the stringency of employment protection — individual dismissals leads to a decrease of unemployment of 1.774 percent. Fujita and Nakajima (2016) point out that the employment rate is procyclical, while the unemployment rate is countercyclical. The research was conducted using secondary data with panel data analysis for 24 countries, 19 of which are current members of the Common Market for Eastern and Southern Africa (COMESA). The results of the endogeneity test show that there are no endogeneity variables (p-values: 0.372, 0.434, and 0.110, retrospectively for the variables scd, sid, and tc).

International trade is a topic that is important for all states, regardless of their level of development. Trade can directly increase foreign exchange earnings and allow consumers to access desired foreign goods and services. Indirectly, trade potentially increases employment and improves technology (via spillover effects). It ultimately improves economic growth and enhances living standards. Conversely, trade can have adverse effects, especially when imports are high. Examples are jobs being outsourced, increased economic dependence, de-industrialisation in importing countries, as well as exposure to negative external shocks. Therefore, it is crucial to critically examine the multifaceted ways that international trade manifests in any economy. On this premise, this compendium interrogates various aspects of international trade in the context of Lesotho. Although Lesotho is a small country, it is strategically located relative to South Africa, which gives it several trade advantages. The country is willing to engage in international trade and investment deals, and it is a member of several significant trade agreements that facilitate its integration into regional and global markets. Examples of these are the African Growth and Opportunity Act (AGOA), the Southern African Customs Union (SACU), the Southern African Development Community (SADC) Free Trade Area, and the Tripartite Free Trade Area, which combines the Common Market for Eastern and Southern Africa (COMESA), SADC and the East African Community. This compendium highlights the implications of international trade on Lesotho’s historical, legal, political, social, geographical, and economic realities. Understanding these dimensions is crucial for scholars, policymakers, investors and international business firms, yet published research and data on Lesotho’s international trade remain very scarce. This book fills that gap and will also resonate with audiences interested in comparable economies beyond Lesotho’s borders.

L'objectif de ce papier était de déterminer l'effet de l'ouverture commerciale sur la croissance économique dans les pays de l'UEMOA en mettant un accent sur l'existence d'un effet seuil et sur l'incidence de la qualité des exportations. Pour ce faire, un modèle en panel a été estimé à partir de l'approche Pool Mean Group (PMG) et les résultats ont montré que l'ouverture commerciale à un impact positif sur la croissance économique lorsque le degré d'ouverture mesuré par (Exportations biens et services + Importations biens et services)/ PIB est inférieur à 61,2% du PIB. Au-delà de ce seuil, l'impact de l'ouverture commerciale sur la croissance économique devient négatif. Les résultats permettent également de mettre en évidence qu'en l'absence de la prise en compte de l'effet seuil, l'ouverture commerciale a un impact négatif sur la croissance économique. En outre, les résultats de l'étude mettent en exergue que l'amélioration de la qualité des exportations combinée à l'ouverture commerciale affecte positivement de la croissance économique dans l'UEMOA.

This research aims to examine the effects of both conventional and Islamic financing on economic growth in five developing economies, namely, Saudi Arabia, Bangladesh, Malaysia, Pakistan, and the United Arab Emirates. This empirical study includes quarterly data from Q4 of 2013 through Q4 of 2020. The methodologies employed for empirical analysis are fixed-effects two-stage least squares (2SLS) and fixed-effects ordinary least squares (OLS). To address the problem of endogeneity in the model, the 2SLS method was applied in addition to OLS. The results of the study indicate that Islamic finance surpasses traditional finance in accelerating economic growth, due to its more realistic and risk-sharing approach. Other factors that contribute to economic growth include investment, trade openness, and human capital. However, Inflation and foreign direct investment are revealed to have detrimental effects on economic growth in the sample countries. For private businesses and government institutions, this research will help better understand the role and scope of the two financial systems namely conventiaonl and Islamic. It examines the available financing options and their respectivev effects on economic growth, stability, and resource allocation. Previous studies on this subject are either single-country analyses or few with panel data to discuss the relationship between Islamic finance and economic growth. This panel data study simultaneously discusses the effect of both Islamic and conventional finance on economic growth. ional finance on economic growth.

This study sought to investigate the relationship between exchange rate volatility and export performance in South Africa. The main objective of the study was to examine the impact of exchange rate volatility on export performance in South Africa. This relationship was examined using GARCH methods. Exports were regressed against real effective exchange rate, trade openness, and capacity utilisation. The research aimed to establish weather exchange rate volatility impacts negatively on export performance in the manner suggested by econometric model. The result obtained showed that exchange rate volatility had a significantly negative effect of South African exports in the period 2000-2011.

This article examines the relationship between trade openness, financial development and economic growth on a panel of four North African countries (Tunisia, Morocco, Algeria and Egypt), over a 5-year period from 1998 to 2017. Using dynamic panel data model estimated by means of the Generalized Method of Moments (GMM), we found that trade openness is positively related to economic growth. We also found that trade openness appears to be working as a complement to financial development and, moreover, that the effect of trade openness is more pronounced in the presence of the financial development variable. The findings suggest that trade openness and financial development are important elements in determining economic growth in these countries. Therefore, the policy-makers should continue to patronize the development of their financial sector and to allow more trade openness in order to achieve a high and sustainable economic growth.