“The aim of this study was to evaluate the impact of preferential trade agreements and
the monetary union on bilateral trade between UEMOA member countries. With the use
of a dynamic gravity model, it was possible to realize that membership in a common
monetary zone and the implementation of common economic reforms had a significant
effect on bilateral trade within the zone, although more in terms of diverting imports
and exports than in terms of creating trade. Furthermore, economic policy distortions
that foster informal transborder trade had a negative effect on trade within the region.”
