Population structure and bilateral trade flows in ECOWAS countries

The basic demographic transition has far-reaching effects on the relative advantages of nations in international trade, including changes in population structure, the increasing participation of women in production, and overall population growth. This research aims to analyze the impact of the demographic structure of nations within the Economic Community of West African States on bilateral trade. Using panel data from 2004 to 2018, this study applies the gravity equation model. The estimation results indicate that variables such as the structure of the youth population, the population size, the fertility rate, and the demographically dependent population have a substantial impact on both bilateral trade and the trade potential of the region. We advise that policymakers take advantage of the demographic benefits offered by the Economic Community of West African States by implementing the measures that will have the greatest impact on the economy. It would be to these countries’ interest to strengthen the variables that raise output magnitude, especially in light of the gap between the two sets of investigated bilateral commerce.