| Regional integration of developing states and of states has been a prevalent topic in the academic and policy-making communities in recent years. This paper analyzes one such regional trade agreement, the Union Economique et Monetaire Ouest Africaine, for trade creation and trade diversion for the period of 1994-2002. This research suggests that the UEMOA has not been successful in generating welfare enhancing trade creation among member states, and that the conditions in these states are not sufficient to generate the economic growth needed to overcome stagnation at this time. This research shows that at present basic economic forces such as individual state GDP, and not regionalism, remain the driving factors behind trade. It suggests that while potential exists for regional trade agreements to promote economic growth in LDCs, states must first address their own viability in the global market through not only economic policies, but also through ensuring political stability. With respect to the later, this study also concludes that democracies perform better in RTAs than non-democratic states. |
