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Trade effects of the East Africa Customs Union in Tanzania: Application of a structural gravity model

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  • Vincent Leyaro

Abstract

By measuring the effects of forming and joining a regional integration bloc using an augmented structural gravity model, this paper finds that the East African Community (EAC) and EAC Customs Union have significantly enhanced Tanzanian trade into EAC markets. Kenya has continued to be the main trading partner for Tanzania in the EAC markets, and from 2015 onwards the trade deficit with Kenya changed into a surplus, signalling improvement in the balance of trade. Tanzania has also maintained a significant trade balance surplus with the other EAC Partner States.

Suggested Citation

  • Vincent Leyaro, 2021. "Trade effects of the East Africa Customs Union in Tanzania: Application of a structural gravity model," WIDER Working Paper Series wp-2021-55, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2021-55
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    References listed on IDEAS

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    Keywords

    East African Community; Customs union; Single Customs Territory; Gravity model; Tanzania;
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