Author(s)

Bingpu Chen^1*, Frederick Kwame Yeboah¹, Bello Nasiru Abdullahi¹, Cephas Coffie Paa-Kwesi²

¹College of Finance and Economics, Gansu Agricultural University, Lanzhou, China.
²School of Management and Economics, University of Electronic Science and Technology of China, Chengdu, China.

China’s relationship with Africa has grown at a breakneck pace following the 1978’s economic reform. This paper focuses on analyzing the macroeconomic determinants of forest product trade between China and ECOWAS member states based on the panel data from 2000-2019. Specifically, the study employs a panel-gravity model by sub-grouping the ECOWAS member states into different income groups per the World Bank classification. Whilst other forest trade studies deal with the controversies surrounding ECOWAS-China resource trade, this study emphasizes the volume of forest trade. This provides fresh insight into the ongoing discussions and existing misconstrued literature on this trade agreement. Per the FMOLS estimation of the panel-gravity model, the study establishes that, apart from GDP and Population which enhances both low income and low middle-income states (ECOWAS), institutional quality plays a vital role in shaping forest trade flows from Middle-income countries. Nevertheless, China’s rapid Economic growth (GDP) and the rising population remain core with regard to exports of forest products. As a result, strengthening and sustaining win-win forest trade deals should be emphasized by both parties since the determinants uncovered in this study may foster continuity for a long time.

China, ECOWAS Member States, Forest Trade, Gravity Model, Exports

Chen, B.P., Yeboah, F.K., Abdullahi, B.N. and Paa-Kwesi, C.C. (2022) Macroeconomic Determinants of Forest Trade between China and ECOWAS Member States: Income Disparity Approach. Open Access Library Journal, 9, 1-19. doi: 10.4236/oalib.1108794.