The Effect of Trade Integration and Governance on Electricity Generation in Africa

Student: Deborah Chiemezielem Onwuegbule (Thesis, 2025)
Department of Economics
PAN-ATLANTIC UNIVERSITY, KM 52 LEKKI-EPE EXPRESSWAY, IBEJU-LEKKI, LAGOS STATE.

Abstract

The intra-African trade is low compared to its trade amongst other countries. It is no surprise that the efforts of the African power pools are yet to be seen. Despite the effort of the five regional power pool programs, countries still stand alone running their own electricity planning at a national level with little to no regional coordination. The study was set out to examine the effect of trade integration, governance and their interaction on electricity generation in Africa. Using panel data for 33 African countries over a period of 24 years, the study employs the Generalized Methods of Moments (GMM) estimator with fixed effects to run the estimation. Trade integration is proxied by trade freedom and governance is proxied by government effectiveness. The analysis reveals that trade integration, governance and their interaction can significantly put electricity generation in Africa at its best.

Keywords
trade integration governance electricity generation africa
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