| dc.description.abstract | Export-led growth strategy has been a focus for Kenya since the early 1990's. Therefore the formation of the 'new' EAC-RTA raises the question of whether this trade arrangement is of merit to Kenya. The study reviewed the effect of various RTA's on members countries and analysed Kenya's exports to Uganda and Tanzania since 1977, when the initial EAC disintegrated and the eventual revival of the East Africa Community.
Using a simple regression model based on commodity exports, which are generally price focused and the EAC-RTA dummy variable, the study estimated the factors and the effect of the EAC-RTA on Kenya exports to the region. The model estimation using annual data on export value from 1977 to 2008 showed that the existence of the EAC-RTA and tarmacked road network in Kenya had significant effect on exports.
In addition the results indicated that when investment as a proportion of the GDP, taken as a proxy for supply side constraints reduces, there is an increase of export value. The study recommends that, to fully exploit the opportunities in the East African region, road infrastructure costs, investment constraints in Kenya be reduced and the new East Africa Community do not disintegrate. | en_US |
