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Do Comparative Advantage, H-O Model, and Ice-berg Partial Equilibrium Model Explain Intra-COMESA Trade for Kenya?

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  • Magdalane Malinda Kikuvi

    (PhD Student; Pan African University-Institute of Governance, Humanities and Social Sciences, Cameroon)

  • Njong Mom Aloysius (PhD)

    (The University of Bamenda, Faculty of Economics and Management Sciences)

Abstract

The paper is part of the dissertation and discusses the implication of international trade theories to intra-COMESA trade using Kenya as a case study. Kenya trades with more than 16countries in the COMESA region (Burundi, Comoros, Democratic Republic of Congo, Egypt, Ethiopia, Eswatini, Libya, Malawi, Madagascar, Mauritius, Rwanda, Seychelles, Tunisia, Uganda, Zambia, and Zimbabwe), thus the analysis. The paper employs the desk review method of research. The study used trade facilitation to measure trade costs. Therefore, the theoretical discussion referred to variables measuring trade costs: trade facilitation (authorized economic operator, single window), distance, common language, and adjacency. International trade theories are used to explain why countries trade beyond national borders. The analysis shows that one theory is insufficient to explain the volume of trade between countries; thus, different theories are explored to explain why countries engage in trade. The paper shows that while comparative advantage is the major theory in international trade, factor intensities and trade costs which determine the volume of international trade are explained by H-O model and Ice-berg partial equilibrium model thus no one theory can exclusively explain trade flows. Similarly, intra-COMESA trade can bet explained by classical and neo-classical theories of international trade.

Suggested Citation

  • Magdalane Malinda Kikuvi & Njong Mom Aloysius (PhD), 2024. "Do Comparative Advantage, H-O Model, and Ice-berg Partial Equilibrium Model Explain Intra-COMESA Trade for Kenya?," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(1), pages 480-488, January.
  • Handle: RePEc:bcp:journl:v:8:y:2024:i:1:p:480-488
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    References listed on IDEAS

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    1. Andrew B. Bernard & J. Bradford Jensen & Stephen J. Redding & Peter K. Schott, 2007. "Firms in International Trade," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 105-130, Summer.
    2. Susan Stone & Ricardo H. Cavazos Cepeda & Anna Jankowska, 2011. "The Role of Factor Content in Trade: Have Changes in Factor Endowments Been Reflected in Trade Patterns and on Relative Wages?," OECD Trade Policy Papers 109, OECD Publishing.
    3. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    4. Chikabwi, Douglas & Chikiwa, Rudo, 2021. "Would Customs Trade Facilitation Programs stimulate COMESA intra-export flows?," African Journal of Economic Review, African Journal of Economic Review, vol. 9(2), April.
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