Regional trade agreement is a tool for economic integration between two or more nations. It takes several forms and there exists different types of agreements depending of its purpose. Just like any trade blocks it has advantages and shortfalls especially if the trading partners are not natural partners. Regional Trade Agreements (otherwise known as RTA) yield welfare benefits in form of consumer surplus, trade creation, revenue and income to the trading partners This paper analyses the welfare impacts of a possible RTA between Nigeria and China. There is huge trade flow between the two countries The major commodities traded and covered in this paper include fuels, machineries and transport. equipment and chemicals. Using data sourced mainly from the World Integrated Trade Solutions (Comtrade, WTO/IDB, WTO/CTS) the paper uses descriptive statistics in measuring the welfare impacts of the agreement The paper reveals that Nigeria possess a Revealed Comparative Advantage (RCA) of export of fuels to China while China possess an RCA of textile, clothing and foot wears export. Its further reveals that if the two economies could focus on trade in the goods with highest RCA, trade will be created and welfare achieved. More so, the RTA leads to deep economic integration. The paper recommends Nigeria and China should hasten the signing of RTA agreement for mutual benefits.
| Published in | Journal of World Economic Research (Volume 10, Issue 1) |
| DOI | 10.11648/j.jwer.20211001.12 |
| Page(s) | 10-17 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2021. Published by Science Publishing Group |
Revealed Comparative Advantage (RCA), RTA, Welfare and Consumer Surplus, Trade Creation, Trade Diversion
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APA Style
Musa Talba Jibrin. (2021). Analysing the Welfare Impacts of an RTA Between China and Nigeria. Journal of World Economic Research, 10(1), 10-17. https://doi.org/10.11648/j.jwer.20211001.12
ACS Style
Musa Talba Jibrin. Analysing the Welfare Impacts of an RTA Between China and Nigeria. J. World Econ. Res. 2021, 10(1), 10-17. doi: 10.11648/j.jwer.20211001.12
AMA Style
Musa Talba Jibrin. Analysing the Welfare Impacts of an RTA Between China and Nigeria. J World Econ Res. 2021;10(1):10-17. doi: 10.11648/j.jwer.20211001.12
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Download@article{10.11648/j.jwer.20211001.12,
author = {Musa Talba Jibrin},
title = {Analysing the Welfare Impacts of an RTA Between China and Nigeria},
journal = {Journal of World Economic Research},
volume = {10},
number = {1},
pages = {10-17},
doi = {10.11648/j.jwer.20211001.12},
url = {https://doi.org/10.11648/j.jwer.20211001.12},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20211001.12},
abstract = {Regional trade agreement is a tool for economic integration between two or more nations. It takes several forms and there exists different types of agreements depending of its purpose. Just like any trade blocks it has advantages and shortfalls especially if the trading partners are not natural partners. Regional Trade Agreements (otherwise known as RTA) yield welfare benefits in form of consumer surplus, trade creation, revenue and income to the trading partners This paper analyses the welfare impacts of a possible RTA between Nigeria and China. There is huge trade flow between the two countries The major commodities traded and covered in this paper include fuels, machineries and transport. equipment and chemicals. Using data sourced mainly from the World Integrated Trade Solutions (Comtrade, WTO/IDB, WTO/CTS) the paper uses descriptive statistics in measuring the welfare impacts of the agreement The paper reveals that Nigeria possess a Revealed Comparative Advantage (RCA) of export of fuels to China while China possess an RCA of textile, clothing and foot wears export. Its further reveals that if the two economies could focus on trade in the goods with highest RCA, trade will be created and welfare achieved. More so, the RTA leads to deep economic integration. The paper recommends Nigeria and China should hasten the signing of RTA agreement for mutual benefits.},
year = {2021}
}
TY - JOUR T1 - Analysing the Welfare Impacts of an RTA Between China and Nigeria AU - Musa Talba Jibrin Y1 - 2021/01/28 PY - 2021 N1 - https://doi.org/10.11648/j.jwer.20211001.12 DO - 10.11648/j.jwer.20211001.12 T2 - Journal of World Economic Research JF - Journal of World Economic Research JO - Journal of World Economic Research SP - 10 EP - 17 PB - Science Publishing Group SN - 2328-7748 UR - https://doi.org/10.11648/j.jwer.20211001.12 AB - Regional trade agreement is a tool for economic integration between two or more nations. It takes several forms and there exists different types of agreements depending of its purpose. Just like any trade blocks it has advantages and shortfalls especially if the trading partners are not natural partners. Regional Trade Agreements (otherwise known as RTA) yield welfare benefits in form of consumer surplus, trade creation, revenue and income to the trading partners This paper analyses the welfare impacts of a possible RTA between Nigeria and China. There is huge trade flow between the two countries The major commodities traded and covered in this paper include fuels, machineries and transport. equipment and chemicals. Using data sourced mainly from the World Integrated Trade Solutions (Comtrade, WTO/IDB, WTO/CTS) the paper uses descriptive statistics in measuring the welfare impacts of the agreement The paper reveals that Nigeria possess a Revealed Comparative Advantage (RCA) of export of fuels to China while China possess an RCA of textile, clothing and foot wears export. Its further reveals that if the two economies could focus on trade in the goods with highest RCA, trade will be created and welfare achieved. More so, the RTA leads to deep economic integration. The paper recommends Nigeria and China should hasten the signing of RTA agreement for mutual benefits. VL - 10 IS - 1 ER -
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