Anticipated Impact of Monetary Union on Bilateral Trade among ECOWAS Members
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Date
2017-03-07
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Journal of Global Economics, Management and Business Research
Abstract
The pattern of growth of International Trade and Bilateral Trade among West African Countires has again brought to light the need for a common currency aimed at financial integration of the ECOWAS community. In this light, this study adopts the explanatory survey design and uses the questionnaire as a primary research instrument to solicit responses from experts in monetary policy, foreign exchange and international business with a view to examine and analyze the potential impact of the proposed ECO currency on Bilateral trade among the ECOWAS members. Data was analysed using the simple linear regression to determine the relationship between the dependent (bilateral trade) and the independent variable (monetary union). Findings from the study indicate there is a positive linear relationship between bilateral trade and monetary union; consistent with Akinyede (2014). The relationship is moderate and significant at 5% level of significance (pvalue=. 001< alpha value=. 05). Therefore, we conclude that the development of monetary union has significant impact on bilateral trade in ECOWAS.
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Keywords
Bilateral trade, ECOWAS, ECO currency, Monetary union