An Analysis On The Trade Potential Between Algeria And African Continental Free Trade Area (ACFTA) Countries

This work seeks to study the effect of joining ACFTA(African Continental Free Trade Area)on Algeria?s foreign trade,more precisely to analyze trade between Algeria and ACFTA countries in order to determine the potential of trade between Algeria and countries belonging to this regional bloc.The analysis is carried out using a gravity model to estimate the determinants of internal trade in ACFTA.The model is applied on a sample of 53 African partners for the years 1996-2017.The results indicate that the traditional variables of the gravity model are the main determinants of trade with ACFTA countries and that regional integration increases trade between the member states of the grouping.Finally,there are untapped trade potentials between Algeria and many economies of the African region,which justifies the importance of adopting and implementing reform programs.