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    Empirical evaluation of the East African regional integration agreement: the case of Kenya

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    Date
    2015
    Author
    Kuindwa, Collins Mayaa
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    Abstract
    This research paper quantifies the trade benefits of the EAC to the Kenyan economy and the amount of trade creation and trade diversion in three main sectors; manufacturing, agriculture and mining. Using panel data ranging from 2000 to 2010 and a sample of 17 countries, the study used a gravity model so as to effectively capture the trade flows. The regression results for the regional dummy variables are found to be both negative and significant; hence the formation of the EAC enhances increased trade between Kenya and EAC member states at the expense of extra-regional trade. This is because trade diversion is present both at the aggregated and sectorial trade levels of Kenya. The extent however varies from sector to sector with a comparatively higher decline in manufactured goods exports as compared to the mining and agricultural exports. Agricultural exports however have the least decline observable.
    URI
    http://hdl.handle.net/11071/5099
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    • BBSE Research projects (2015) [45]

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