Intra-African Trade and Corruption: Evidence from Sub-Saharan African Countries

Cross-border trade is critical to livelihoods and food security in Sub-Saharan Africa (SSA), but bribery remains one of the main barriers to economic growth in the region. Does corruption affect intra-African trade? We address this issue by considering the bilateral trade among 48 Sub-Saharan African countries from 2000 to 2018, which are subject to a high level of corruption. Using a gravity model, the results show that corruption has a positive impact on exports and a negative impact on imports of global, primary and manufactured goods. However, the difference in the level of corruption between country pairs is negatively and significantly associated with intra-African trade in manufactured goods. Therefore, to promote the corruption-free environment needed to facilitate the African Free Trade Agreement (AfCFTA), it is essential for policymakers in Sub-Saharan African countries to combat corruption to boost intra-African trade.