Main Article Content
Abstract
The study employed the Heckscher-Ohlin theory to explore the potential logistical impacts on ECOWAS bloc following the intended exit of Mali, Burkina Faso and Niger. An explorative qualitative design was adopted. Data were gathered from news websites, articles, reports of international trade and logistics organisations and analysed using Atlas.ti, focusing on logistical cost, flow and schedules. The findings indicated that the departure would significantly impact costs as taxes and tariffs would be reintroduced. The high costs would affect both parties, with the contending countries experiencing more severe consequences, due to their reliance on the remaining members for imports and exports. Logistical flow would be disrupted, hindering the previously seamless movement of goods and persons. The imposition of travel requirements would further impede logistical freedom, resulting in delays. Stakeholders should devise strategies through bilateral agreements to maintain supply chains efficiency focusing on mitigating logistical disruptions due to reintroduction of barriers and restrictions.
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References
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References
Akther, T., Voumik, L.C. and Rahman, M.H. (2022), "The pattern of international trade between Bangladesh and USA: Heckscher–Ohlin and Rybczynski analysis", Modern Supply Chain Research and Applications, Vol. 4 No. 3, pp. 162-176. https://doi.org/10.1108/MSCRA-03-2022-0011
Cecchi, R. (2024) Burkina Faso, Mali and Niger: Military juntas announce withdrawal from ECOWAS. Credendo. Country News https://credendo.com/en/knowledge-hub/burkina-faso-mali-and-niger-military-juntas-announce-withdrawal-ecowas
Dada, E.A. (2015). An empirical analysis of integration and intra-regional trade in ECOWAS. Journal of African Development, 17 (1), 97-116.
Ecofin Agency (2024) ASS-exit: Mali, Burkina Faso, and Niger forge a new path, Initiating departure from ECOWAS. Ecofin agency. https://www.ecofinagency.com/public-management/2901-45166-ass-exit-mali-burkina-faso-and-niger-forge-a-new-path-initiating-departure-from-ecowas
Economic Community of West African States (ECOWAS)", thoughtco.com, Unknown, https://www.thoughtco.com/economic-community-west-african-states-ecowas-43900, Web, Accessed 23. Feb 2024
ECOWAS (2016). Trade. https://old22.ecowas.int/?page_id=370
Encyclopedia Trading Blocs. Encyclopedia.com Unknown, https://www.encyclopedia.com/finance/finance-and-accounting-magazines/trading-blocs, Web, Accessed 23. Feb 2024
Eurostat Statistics Archive (2011) ECOWAS – EU trade and investment statistics. https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Archive%3AECOWAS-EU_-_trade_and_investment_statistics
FasterCapital. Trading blocs: paving way for regional economic integration. Unknown, https://fastercapital.com/content/Trade-blocs--Paving-the-Way-for-Regional-Economic-Integration.html, Web, Accessed 23. Feb 2024
Festus E.E., (2021) Logistics and trade flows in selected ECOWAS countries: An empirical Verification. arXiv:2108.06441 [econ.GN] https://doi.org/10.48550/arXiv.2108.06441
International Trade Center (ITC). Trade statistics (2024) https://www.trademap.org/Country_SelProductCountry_TS.aspx?nvpm=1%7c562%7c%7c%7c8%7cTOTAL%7c%7c%7c2%7c1%7c1%7c2%7c2%7c1%7c2%7c1%7c1%7c1
Joshi R. (2022) 6 inland waterways and dry ports in Mali. Marin Insight. https://www.marineinsight.com/know-more/dry-ports-in-mali/
Klein, A.L., (2023) Top 5 ports to watch in West Africa. Energy Capital & Power. https://energycapitalpower.com/top-5-ports-to-watch-in-west-africa/ web accessed on 22nd Match 2024
Kumar V. (2018). Trade Blocs - International Business Operations", ebooks.inflibnet.ac.in, Unknown, https://ebooks.inflibnet.ac.in/mgmtp08/chapter/trade-blocs/, Web, Accessed 23. Feb 2024
Logistics Cluster (2022) WFP. Logistics Capacity Assessments (LCAs) https://dlca.logcluster.org/export/4553 web accessed on 22th March 2024
Mahir M (2024) Understanding the Implications of Mali, Niger, and Burkina Faso's Departure from ECOWAS. Linkedin. https://www.linkedin.com/pulse/understanding-implications-mali-niger-burkina-fasos-departure-mahir-vg7ke/
Mohammed H. (2024) Burkina-Mali-Niger must reconsider decision to exit ECOWAS – Analyst citinewsroom https://citinewsroom.com/2024/01/burkina-mali-niger-must-reconsider-decision-to-exit-ecowas-analyst/An Analyst with the Economic Community of West African States (ECOWAS)
Nitsche, B., Mensah, H.K., Straube, F., & Barigye, V. (2024). Leveraging the potential of the African Continental Free Trade Area. Logistics, 8, 25.
Nsouli, S. M. (Ed.). (2004). The New Partnership for Africa’s Development: Macroeconomics, Institutions, and Poverty. International Monetary Fund. ISBN: 1-58906-262-0.
Okafor C (2024) Analysis: Exiting ECOWAS and its implications for Niger, Mali, Burkina Faso and West Africa. Premium times. https://www.premiumtimesng.com/news/headlines/665494-analysis-exiting-ecowas-and-its-implications-for-niger-mali-burkina-faso-west-africa.html. web, accessed on 4th March 2024
Quaye D., (2024) Burkina Faso, Mali and Niger exit from ECOWAS-economic and security implications. Business Financial Times. https://thebftonline.com/2024/02/22/burkina-faso-mali-and-niger-exit-from-ecowas-economic-and-security-implications/.
Rushton A., Croucher P.&Baker P. (2017) The handbook of Logistics and Distribution Management 6th ed. Kogan pages
Salawu, Y.O. & Ghadiri, S.M., 2022, ‘Roles of trade logistics to the development of international trade: A perspective of Nigeria’, Journal of Transport and Supply Chain Management 16(0), a764. https://doi.org/10.4102/jtscm.v16i0.764
StudySmarter. Monetary Union: Benefits & Key Factors | studysmarter.co.uk, Unknown, https://www.studysmarter.co.uk/explanations/macroeconomics/economics-of-money/monetary-union/, Web, Accessed 23. Feb 2024
Uexkull E. V., (2011) Regional Trade and Employment in ECOWAS. International Labour Organisation (ILO). https://www.oecd.org/site/tadicite/48707550.pdf
World Bank. (2020). Logistics Performance Index 2020. Retrieved from https://www.worldbank.org/en/publication/logistics-performance-inde
KALU, I (2022). Empirical Test of the Heckscher-Ohlin Theory in Nigeria. Afribary. Retrieved from https://afribary.com/works/empirical-test-of-the-heckscher-ohlin-theory-in-nigeria
Prakash, S., & Anand, S. D. (2023) Empirical Investigation of Heckscher-Ohlin Theory on India's Foreign Trade. Taylor & Francis Book Chapter. Available at: https://www.taylorfrancis.com/chapters/edit