Browsing by Author "Adugna Lemma"

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    Impacts of Regional Trade Agreement on Agricultural Products in Africa: Panel Data Approach
    (A.A.U, 2012-06) Adugna Lemma; Girma Estiphanos
    This study examines the effects of regional trade area or free trade area on trade in agricultural products within intra- COMESA countries and extra-COMESA countries using a panel data for the period (2001-2010). A panel data framework has many advantages vis-a.-vis the cross-section approach. It allows to disentangling countryspecific and time-specific effects. In order to analysis the impacts this study employed random affects GLS model depending on Hausman test guidance. The contribution of this study to the literature is that the effects of FT A of COMESA is positive and as expected and statistically significant .Agricultural trade have been diverting from former COMESA members and from SADC members to newly established FT A member countries. The findings is consistent the theory of Linder hypothesis that large size countries tend to trade more with large size countries and Heckscher-Ohlin- Samuelson theorem. Most result of standard variable included in the gravity model is positive as expected and statistically significant. The results of the study also confirm with the hypothesis that both FTA and extra-COMES A agricultural trade is positively correlated with the volume of trade but inversely with SADC and non FTA member COMESA countries.