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This paper aims at assessing the performance of intra-COMESA trade integration on the basis of success of ASEAN integration, using an out-of-sample approach. The analysis employed a gravity approach to estimate the coefficients of the ASEAN model which are used as a benchmark to project the potential trade for eight COMESA members. The success of COMESA is estimated by the ratio of potential to actual trade. The results pointed out that all countries of the selected sample are far from their potential trade level, implying unfavorable performance of the regional trade integration among COMESA members. The results also indicate that the gap between potential and actual trade has decreased in the last decade, suggesting a convergence toward the potential trade level over time. Finally, the paper ends with some policy recommendations regarding promoting regional cooperation among COMESA members.

This article investigates the behavior of equilibrium exchange rate and real exchange rate misalignment in Sudan over the period 1979-2009. In addition, the impact of real exchange rate misalignment on economic performance is examined. The empirical results show that the equilibrium exchange rate is significantly influenced by economic policy variables such as trade openness, government expenditure and taxes. The results also reveal that the Sudanese economy has exhibited an exchange rate overvaluation over the period under consideration. Consistent with our expectations for the period that related to oil exploitation, the real exchange rate has shown a low volatility owing to huge inflows of foreign exchange. Moreover, the results demonstrate that exchange rate misalignment has a deleterious impact on Sudanese export performance.

provides economic analysis and policy advice with the aim of promoting sustainable and equitable development. The Institute began operations in 1985 in Helsinki, Finland, as the first research and training centre of the United Nations University. Today it is a unique blend of think tank, research institute, and UN agency-providing a range of services from policy advice to governments as well as freely available original research. The Institute is funded through income from an endowment fund with additional contributions to its work programme from Finland, Sweden, and the United Kingdom as well as earmarked contributions for specific projects from a variety of donors.

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