Factors affecting trade facilitation in East Africa and their impact on Kenya/Uganda/Tanzania/Rwanda/Burundi border points
Abstract
The paper investigated the factors affecting Trade Facilitation at the border points of East
Africa and their impact on Trade Facilitation.. The goal of this study was ultimately to
answers the question as to whether Facilitation can reduce costs of doing business and if
Trade Facilitation leads to economic growth of East African countries. The paper utilized the
Gravity Model to establish the relationship between variables. The model was run using a
fixed effect and a random effect .Horseman test was later on conducted to determine between
the fixed effect and random model which was suitable. Secondary data was sourced from
World Bank data base and CEPII, International Monetary Fund (IMF) year book.. Empirical
results indicated that the border points in East Africa play an important part in Trade
Facilitation if impediments to trade are addressed. The 8 border points in the study exhibit
cross cutting non tariff barriers which impact negatively on Trade Facilitation and increase
costs of doing business . Trade facilitation leads enhanced trade flows and economic growth.
Recommendations made is that governments should invest in Trade Facilitation initiatives
for economic growth of East African Countries among others.
Citation
Master of Arts in EconomicsPublisher
University of Nairobi