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CGF Seminar - Financial Sector Development and intra-African Trade

This seminar was delivered on Wednesday, 22 February 2023 as part of the CGF Seminar series 2022-2023 Full title: Financial Sector Development and intra-African Trade Presenters: Dr Lewis Gakpa and Dr Hugues Kouadio, National School of Statistics and Applied Economics (ENSEA), Côte d’Ivoire Chair: Prof. Victor Murinde, SOAS University of London Abstract This paper examines the relationship between financial sector development and intra-African trade. We specify an empirical model that includes financial market development variables, cross-border banking flows and intra-African trade variable. The results show a positive and strongly significant relationship between financial sector development and intra-African trade, in Africa as a whole and among African regions (SADC, COMESA, ECOWAS). Furthermore, the results show that financial sector development affects intra-African trade directly and indirectly through its impact on the agricultural services and industrial sectors. Our results are robust to alternative model specifications.

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