Can WTO membership boost intra-African trade?

This study uses the modified gravity model to examine the determinants of trade in goods within African countries. The panel data covers the period between 2000 and 2019 for all 54 countries in Africa. The article contributes to the existing literature on trade determinants in Africa, including distance and economic size in the study of bilateral trade, by augmenting the gravity model with the inclusion of WTO membership. The gravity model is applied using three different methods of estimation: Ordinary Least Squares (OLS), Poisson Pseudo Maximum Likelihood (PPML), and Gamma Pseudo Maximum Likelihood (GPML) models. Our findings show that the GDP of both exporters and importers, sharing common language and borders positively affect intra-African trade, while the impact of distance is significantly negative. We also found that being a WTO member significantly enhances international trade between African partner countries. This study can help formulate better trade policies for African countries.