A SYSTEMATIC REVIEW OF INSTITUTIONAL QUALITY AS A POTENTIAL CATALYST OF INTRA–REGIONAL TRADE PERFORMANCE

Abstract

This paper explores the potential of institutional quality as a driver of intra-regional trade performance, particularly in the context of the African Continental Free Trade Area (AfCFTA). The aim is to synthesise the evidence on the critical role institutional quality plays in enhancing trade performance. We used a systematic review of 45 relevant articles, selected from an initial pool of 185 articles published between 2011 and 2024. The articles were rigorously chosen through a well-defined selection process to provide comprehensive insights into the relationship between institutional quality and trade performance. The review highlights significant gaps in the literature, especially concerning the sensitivity of trade performance to institutional quality. Weak institutions are identified as major constraints on intra-African trade, limiting the growth of regional trade networks. The findings suggest the need for more research on how institutional quality can be enhanced to improve intra-regional trade, with a focus on the newly established AfCFTA.This study provides valuable recommendations for policymakers, emphasising the importance of improving governance, reducing corruption, and enhancing regulatory quality. The findings offer actionable insights for formulating policies and institutional reforms aimed at stimulating intra-regional trade and promoting sustainable economic development. The paper contributes to the existing body of knowledge by bridging gaps in understanding the role of institutional quality in intra-regional trade. It provides a unique perspective on the importance of institutional reforms for facilitating trade, offering evidence-based recommendations that are particularly relevant to the African context and the ongoing AfCFTA initiative.