Potential Fiscal Stability effects of the African Continental Free Trade Area: An empirical analysis

Authors

• Simon Abendin, Zhengzhou University Business School, Department of International Economics and Trade Zhengzhou City, Henan, ChinaFollow
• Duan Pingfang, Zhengzhou University Business School, Department of International Economics and Trade Zhengzhou City, Henan, China
• Umer Shahzad, Zhengzhou University Business School, Department of International Economics and Trade Zhengzhou City, Henan, China

Corresponding Author

Simon Abendin

Authors ORCID

Simon Abendin <0000-0003-0944-3230>

Document Type

Original Article

Subject Areas

African Trade

Keywords

Fiscal stability, African Continental Free Trade Area, GMM

Abstract

This study analyzes the potential effects of the African Continental Free Trade Area (AfCFTA) on fiscal stability, using panel data from 54 African economies that have ratified the AfCFTA from 2010 to 2021. The study uses a dynamic system GMM model to address endogeneity, simultaneity, measurement bias, and reverse causality issues. The findings indicate that the AfCFTA agreement may reduce government revenue and spending. Furthermore, the study found that the AfCFTA could lead to an increase in government debt

How to Cite This Article

Abendin, Simon; Pingfang, Duan; and Shahzad, Umer (2025) "Potential Fiscal Stability effects of the African Continental Free Trade Area: An empirical analysis," Journal of African Trade: Vol. 13: Iss. 1, Article 3.
DOI: https://doi.org/10.59624/2214-8523.1148

Receive Date

16/08/2023

Accept Date

09/10/2025

Publication Date

2025