Problems and prospects of regional economic integration:a case study of east African community (EAC).
Abstract
This paper has considered the flow of trade between the East African countries using the
gravity model. The study attempt to explore bilateral trade between the three East
African countries. In particular the paper reviews the issue that hindered the flow of
bilateral trade among the East African countries and tests the determinants of trade flows
using the experience of EAC as a case study. The major conclusions that emerge from the
study is that intra-EAC trade could be explained by the standard variables as shown by
the results of the gravity model, but the EAC regional integration variable had
insignificant effect on the flow of bilateral trade among the East African states. In
addition the performance of EAC is mainly constrained by problems of variation in
ideology, compensation issues, overlapping membership, poor private sector
participation and harmonization of policies. These problems are likely to hinder the
success of the intra-EAC trade and thus there is a need for these countries to take
integration as an economic survival strategy aimed at combating marginalization and
widening their markets.
Citation
Masters thesis University of Nairobi (2005)Publisher
University of Nairobi Department of Economics
Description
Degree of Master of Arts in Economic Policy and Management