Determinants of Kenya's exports from 1960 to 2010
Kenya has had several trade reforms to promote the trade sector through exports promotion initiatives. This paper therefore, sought to identify the determinants of Kenyas exports between 1960 and 20 lOusing annual time series data. The study used the Error Correction Model with Kenya exports values as the dependent variable and Foreign Direct Investment, Gross Domestic Product for Uganda, Terms of Trade, Real Exchange Rate, Consumption and Gross Fixed capital Formation as the explanatory variables. The study found Gross Domestic Product for Uganda, Real Exchange Rate, Consumption and Gross fixed capital formation as significant determinants of Kenya's exports. The study also found that Kenya's export values increased during periods of regional trade arrangements as well as with joining trading blocks like EAC, and COMESA, hence the need to focus more effort towards global and regional trade integration, can help Kenya benefit from trade.
University of Nairobi, Kenya