Unpacking External Constraints on Africa’s Continental Free Trade Ambitions

Abstract

This article examines whether the creation of a continental free trade area benefits all African countries, using an analysis of external constraints. By employing error-correction models estimated via ordinary least squares throughout 1981 to 2017, the study reveals that several sub-Saharan African nations experience persistent trade deficits, indicating the presence of external constraints. Moreover, countries with fragile currencies are particularly vulnerable to exchange rate volatility.