Effects of Regional Characteristics on Ecowas Trade Flow Patterns in Agricultural Products

During the structural adjustment programme (SAP) era, policies of most ECOWAS member nations were directed at altering and re-aligning aggregate domestic expenditure and production patterns to minimize over dependence on imports, enhance non-oil export base and ensure a steady and balanced economic growth. In spite of the removal of both tariff and non tariff barriers to trade by the sub region, what are the current levels of intra-regional trade flows (exports and imports) in agricultural products given similar factor endowments, tastes and fashion within the sub-region? Which of the regional macroeconomic characteristics have significant effect on intra-ECOWAS trade flows in agricultural commodities? What policy measures should be put in place to promote intra-ECOWAS trade in agricultural commodities? The results revealed increasing volume of trade in agricultural products between Nigeria and partner nations within the ECOWAS sub-region compared to the rest of the World (ROW). The results further revealed that; Average partners gross domestic product, (GDP) (X₂), (ii) Average partners population (X₆), (iii) Foreign direct investment (X₈) and (iv) Average partners value added by manufacturing (X₁₀) had highly significant influence on intra-regional trade flows, while average partners’ gross national income per capita, GNI; (X₄) average partners’ agric value added (X₁₂), average partners’ household final consumption expenditure and (X₁₄), and average partners’ government final consumption expenditure (X₁₆), showed insignificant effects. ECOWAS sub-region should increase value addition in agricultural commodities and improve agricultural manufactures so as to sustain and improve intra-ECOWAS trade flows in agricultural products. Also, private and public sectors concerned with agricultural products should put hands on deck to increase the national and partner productivity through efficient methods.