| dc.description.abstract | Uganda is Kenya's number one trading partner in Africa, and
number three in the rest of the world. It is an important market
for Kenya's industrial goods. This study was undertaken to
investigate the factors that determine bilateral trade between
Kenya and Uganda. To achieve this objective, import demand
functions were specified and estimated for each country's demand
for the other's goods. Data was collected on relevant variables
for the period 1969-1989.
The data was analyzed for integration and co-integration, and
the appropriate form used in the estimation of the import demand
models. The multiple regression estimation technique was applied,
to test the hypotheses stipulated by theory to determine the demand
for imports. Some diagnostic tests were also carried out to confirm
the results of the estimations.
The empirical findings of the study were that, ln the case of
Kenya, lagged imports had a positive effect on its demands for
Ugandan goods, while political conflicts exerted a negative
influence on the demand function. For Uganda, the factors that
were found to significantly determine the demand for Kenyan goods
were income and population, both factors having negative effects on
demand. | en |
