An Analysis of regional integration in a developing economy.

Abstract

The purpose of this study is to find the effect of regional integration in the Kenyan economy with a particular emphasis of dete1mining whether the regional integration has resulted to trade creation or trade diversion. The study adopts an augmented gravity model to determine the effects of the regional integration and the resulting effects either being trade creation or trade diversion. Time series data was used for the period 1980-2015. Using a panel data analysis the results show that there was some trade creation within EAC and COMESA.