Thirteenth Global Studies Conference

Abstract

This paper investigates the influence of intra-regional trade on economic prosperity in Africa based on a network centrality theory. It argues that the online positioning of a country in a regional trade network can influence the continent’s overall prosperity outcomes. Using a System Generalized Method of Moments and panel regression models to analyse 45 African Union countries, results reveal that network factors of intra-regional trade such as weighted outdegree (the value of a country’s exports) and closeness centrality (distance of a country to all other countries in the trade network) are important for boosting Africa’s economic prosperity. However, the influence of network factors of intra-regional trade including weighted indegree (value of a country’s imports), weighted outdegree (value of a country’s exports), closeness centrality (distance of a country to all other countries in the trade network), betweenness centrality (criticality of a country between two other countries in the trade network), and eigencentrality (proximity of a country to other countries who trade substantially with many other countries in the trade network) on economic prosperity is more evident in Northern and Southern Africa than other sub-regions. Based on these findings, it is recommended that African governments become aware of the roles these network factors play in increasing prosperity outcomes in Africa. Hence, these network factors need to be integrated into Africa’s trade designs and developmental policy agenda, with specific target on those policies that will enhance better wellbeing of the African population and as well as the wealth of the continent.