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Trade Integration in the East African Community: An Assessment for Kenya

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  • Meredith A. McIntyre
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    Abstract

    The paper analyses the potential trade impact of the forthcoming East African Community (EAC) customs union. It examines the trade linkages among the member countries of the EAC and the extent to which the introduction of the EAC common external tariff will liberalize their trade regimes. To gauge the potential trade impact of the formation of the customs union, simulations are conducted for Kenya. The empirical results indicate that the customs union will have a beneficial effect on Kenya's trade. The paper does not draw any conclusions on the potential welfare impact of the customs union. Finally, factors other than enhanced trade might influence Kenyan policymakers to pursue regional integration, and these include regional cooperation in "behind the border" reforms and the provision of public goods.

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    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=18057
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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 05/143.

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    Length: 26
    Date of creation: 01 Jul 2005
    Date of revision:
    Handle: RePEc:imf:imfwpa:05/143

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    Related research

    Keywords: Customs duties; Trade; Trade integration; Economic models;

    This paper has been announced in the following NEP Reports:

    References

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    1. Mkenda, Beatrice Kalinda, 2001. "Is East Africa an Optimum Currency Area?," Working Papers in Economics 41, University of Gothenburg, Department of Economics.
    2. Venables, Anthony J., 2000. "Winners and Losers from Regional Integration Agreements," CEPR Discussion Papers 2528, C.E.P.R. Discussion Papers.
    3. Arvind Panagariya, 2000. "Preferential Trade Liberalization: The Traditional Theory and New Developments," Journal of Economic Literature, American Economic Association, vol. 38(2), pages 287-331, June.
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    Cited by:
    1. Anna Maria Mayda & Chad Steinberg, 2008. "Do South-South Trade Agreements Increase Trade? Commodity-Level Evidence from COMESA," Development Working Papers 247, Centro Studi Luca d\'Agliano, University of Milano.

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