Regional Economic Integration and Economic Growth in the COMESA Region, 1980–2010

Abstract

A key goal of the COMESA Treaty (1993) was to stimulate sustainable economic growth in the region through increased trade between member states. On the basis of a 1980–2010 annual panel dataset, we examine the contribution of COMESA integration to economic growth in the region using instrumental variables GMM regression in the framework of a cross-country growth model. Contrary to a priori expectation, we find no significant empirical support for a positive growth impact, as yet, on the region from the integration. Growth in capital stock, population, world GDP and the level of openness to international trade turned out to be the most robust drivers of growth in the COMESA region over the period.