The Impact of Regional Integration on Per Capital Incomes of Ecowas Countries
By Dr Freeman Aye-agele
THE IMPACT OF REGIONAL INTEGRATION ON PER CAPITAL INCOMES OF ECOWAS COUNTRIES
Dr Freeman Aye-Agele
Department of Economics, Federal University, Lafia, Nigeria
This paper investigates regional integration and its impact on per capita income convergence or divergence of ECOWAS countries and the formation of income clubs in selected years between 1980 and 2015. Using World Bank classification (2002, 2015) to identify ECOWAS countries’ income groups and sigma convergence to establish convergence or divergence, the paper presents the evidence that ECOWAS countries belong to different income groups. The sigma convergence using standard deviation shows divergence in incomes while the coefficient of variation shows no clear tendency of convergence or divergence. Thus, there has been limited progress and prospects of ECOWAS integration process despite the importance of the concept to foster economic cooperation in the sub region. It is recommended that common policies be adopted in ECOWAS and in particular, on trade and investment which are critical indicators in the formation of regional integration and catalysts for income convergence, regional growth and economic cooperation.
About the Author
Dr Freeman Aye-agele