ECONOMETRIC ANALYSIS OF DIFFERENTIAL TRADE PREFERENCES IN THE ECONOMIC SOCIETY OF WEST AFRICAN COUNTRIES

This study is an econometric exploration of the impact of differential trade preferences on the Economic Society of West African Countries with focus on the Cotonou Agreement period of 2001 to 2013. The aim was to empirically evaluate using panel least squares regression method the degree to which the preferential trade agreement between EU and ECOWAS has affected intra-ECOWAS integration. Given a significant interactive effect, we accept the supposition that EU exceptional trade agreements with ECOWAS countries have not significantly enhanced intra-ECOWAS trade. Accordingly, the study found that the adverse effect of ECOWAS openness to the EU on ECOWAS intra-trade is instituted on intermittent differentials of favored treatments to different ECOWAS member countries. There is need for the consistency of the special treatment of ECOWAS by the EU.