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

  • Meredith A. McIntyre
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    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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    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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    1. Padamja Khandelwal, 2004. "Comesa and Sadc: Prospects and Challenges for Regional Trade Integration," IMF Working Papers 04/227, International Monetary Fund.
    2. 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.
    3. Anthony J. Venables, 2003. "Winners and losers from regional integration agreements," Economic Journal, Royal Economic Society, vol. 113(490), pages 747-761, October.
    4. Mkenda, Beatrice Kalinda, 2001. "Is East Africa an Optimum Currency Area?," Working Papers in Economics 41, University of Gothenburg, Department of Economics.
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