Transnational Integration, Exports, and Economic Growth of Organisation of African Unity: The Evidence from the Central African Economic and Customs Union

Author

Olusegun William Osun, Fontbonne College

Year of Award

1987

Degree

Master of Business Administration (MBA)

College

College of Business & Professional Studies

Degree Program

Business

Department

Business Administration

Keywords

Central Africa, Exports, Economic Integration, Central African Customs and Economic Union, Cameroon, Foreign Trade

Abstract

This study analyzes the issue of economic integration in Central Africa. It attempts to provide an answer to several Questions raised when the Central African Customs and Economic Union was being formed: Can Central African states really benefit from their economic union? What are the sources of these benefits? How extensive are these benefits likely to be?

Discussion of the benefits generated by integration is organized around two streams of economic theories. One is based on a static view of economic conditions. The analysis proceeds from consideration of the 'benefits arising out of a rearrangement of existing policies and a reallocation of resources. It takes a world view of the process of integration and assesses the benefits and disadvantages on that basis.

The other theory bases its analysis on dynamic factors. It questions the assumptions and hypothesis of the first paradigm and maintains that static welfare assumptions, on which the other approach is based, are largely irrelevant for developing countries. The theory stresses that the major goal of economic integration in developing countries should be to obtain a high rate of economic growth. In this model, even though the gains to be had through improved allocative efficiency in the static sense may be slight, integration is beneficial because of the growth-fostering dynamic changes it brings to a region. It is this latter theoretical framework that is used in the econometric analysis of the study.

A model was estimated to measure the contribution that the region~s export sector has made to the growth rate of gross national product for two periods in the life of the Central African Customs and Economic Union. A positive, significant relationship was found for the latter period but not for the earlier period, leading to the conclusion that economic integration brought about structural change in the region~s export sector that has improved the region's economic rate of growth.

Document Type

Restricted Thesis

Recommended Citation

Osun, Olusegun William, "Transnational Integration, Exports, and Economic Growth of Organisation of African Unity: The Evidence from the Central African Economic and Customs Union" (1987). All Theses, Dissertations, and Capstone Projects. 637.
https://griffinshare.fontbonne.edu/all-etds/637