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The Determinants of Trade Costs in the East African Community

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  • Kaminchia, Sheila Mwendwa

    (University of Nottingham)

Abstract

This paper assesses the East African Community’s (EAC) effectiveness in integrating member countries by lowering total bilateral trade costs. First, information is provided on the size and distribution of bilateral trade costs among 16 manufacturing industries over the period 1990~2012 for a sample comprising five EAC countries and 87 of their trade partners. The estimates indicate that it costs on average three times more for an EAC country to trade manufactured goods with another EAC country than to trade those goods domestically. The estimates also indicate that it costs on average eight times more for an EAC country to trade manufactured goods with a non-EAC country than to trade those goods domestically. This paper then shows the importance of natural and policyrelated factors in determining the trade costs.

Suggested Citation

  • Kaminchia, Sheila Mwendwa, 2019. "The Determinants of Trade Costs in the East African Community," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 34(1), pages 38-85.
    • Handle: RePEc:ris:integr:0763
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    Citations

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    Cited by:

    1. Asongu, Simplice & Odhiambo, Nicholas, 2022. "The paradox of governance and natural resource rents in Sub-Saharan Africa," MPRA Paper 119066, University Library of Munich, Germany.
    2. Abban, Stanley, 2020. "Institutions, Infrastructure and East African Community Membership of Burundi and Rwanda on Trade," MPRA Paper 100654, University Library of Munich, Germany, revised 10 May 2020.
    3. Asongu, Simplice A & Odhiambo, Nicholas M, 2023. "Governance quality and trade performance in Sub-Saharan Africa," Working Papers 29697, University of South Africa, Department of Economics.
    4. Simplice A. Asongu & Thales P. Yapatake Kossele & Joseph Nnanna, 2021. "Not all that glitters is gold: political stability and trade in Sub-Saharan Africa," Research Africa Network Working Papers 21/005, Research Africa Network (RAN).
    5. Suárez-Varela, Marta & Rodríguez-Crespo, Ernesto, 2022. "Is dirty trade concentrating in more polluting countries? Evidence from Africa," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 728-744.
    6. Stanley, Abban, 2020. "The prospect of the proposed Currency Union on intra-regional trade in East African Community," MPRA Paper 100512, University Library of Munich, Germany.
    7. Sheila Kaminchia, 2020. "Effect of transit road quality on trade costs in East Africa," African Development Review, African Development Bank, vol. 32(3), pages 316-326, September.

    More about this item

    Keywords

    Trade costs; Gravity; East African Community; Trade integration;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F15 - International Economics - - Trade - - - Economic Integration

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