Causality between intra-African trade openness and Customs duty rate

This study examines the causality between intra-African trade openness and transport infrastructure development index, industrial development index, ICT development, business and competition regulation index, and Customs duty rate. Panel causality test of Granger (1969) and Dumitrescu and Hurlin (2012) was applied to data from 36 African countries over the period 2010-2019. The results reveal that there is a causal relationship between (internet access, mobile phone access, customs duty rate, transport infrastructure development, business and competition regulation) and intra-African trade openness. There is a bidirectional causality between intra-African trade openness and of industrial development sector, and a bidirectional causality between development of transport infrastructure and industrial development. We recommend that African countries should develop the transport infrastructure and industrial sector. African should also strengthen the development of communication and intensify exemptions from customs duties on imports of equipment acquired in the context of industrial development and the construction of transport infrastructure.