Economic openness and inflation in the countries of the economic community of West African states (ECOWAS)

The article examines the influence of international trade on inflation in the countries of the Economic Community of West African States (ECOWAS). The main indicators of measuring economic openness are analyzed. The specifics of international trade of the countries of the ECOWAS Community are determined. The conducted analysis has shown that the ECOWAS countries import goods mainly from China and export mainly to India. The trading partners of the ECOWAS countries and the main imported and exported goods have been identified. It has been substantiated that the ECOWAS economy is poorly diversified, which creates a strong dependence on other countries. The evaluation of a panel fixed-effect model showed that international trade strongly influences ECOWAS inflation. The indicators of economic openness under examination have a significant impact on the inflation rate: import has a positive impact on the inflation rate in the countries of the Economic Community of West African States (ECOWAS), while export has a negative one.