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Cross-border trade within the Economic Community of West African States remains fundamental to regional food distribution, small-scale commerce, and household livelihoods. Yet traders continue to confront persistent non-tariff barriers, administrative delays, and governance weaknesses that raise the cost of moving goods across borders. This paper investigates how informal governance, corruption pressures, and institutional trust shape trade frictions, drawing on UN Comtrade bilateral flows, the Africa Trade Observatory price data, and Afrobarometer perceptions of institutional performance. Using price-gap estimation and a structural gravity framework, the analysis measures how governance quality influences trade costs and distortions in reported bilateral flows. The findings reveal consistent price gaps between official and actual market values for cereals, livestock, and processed foods, suggesting hidden costs linked to bribe payments and informal checkpoint controls. Gravity results indicate that countries with weak institutional trust experience significantly lower formal trade reporting but higher estimated informal flows. These results align with evidence from Afreximbank, ECDPM, FAO, and the African Development Bank on the persistence of informal corridors as adaptive responses to border inefficiencies. The paper concludes with recommendations for coordinated reforms on transparency, digital border systems, and joint border posts to reduce hidden costs and improve regional integration.

Cross-border trade within the Economic Community of West African States remains fundamental to regional food distribution, small-scale commerce, and household livelihoods. Yet traders continue to confront persistent non-tariff barriers, administrative delays, and governance weaknesses that raise the cost of moving goods across borders. This paper investigates how informal governance, corruption pressures, and institutional trust shape trade frictions, drawing on UN Comtrade bilateral flows, the Africa Trade Observatory price data, and Afrobarometer perceptions of institutional performance. Using price-gap estimation and a structural gravity framework, the analysis measures how governance quality influences trade costs and distortions in reported bilateral flows. The findings reveal consistent price gaps between official and actual market values for cereals, livestock, and processed foods, suggesting hidden costs linked to bribe payments and informal checkpoint controls. Gravity results indicate that countries with weak institutional trust experience significantly lower formal trade reporting but higher estimated informal flows. These results align with evidence from Afreximbank, ECDPM, FAO, and the African Development Bank on the persistence of informal corridors as adaptive responses to border inefficiencies. The paper concludes with recommendations for coordinated reforms on transparency, digital border systems, and joint border posts to reduce hidden costs and improve regional integration.