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Regional Trade Integration in East Africa: Trade and Revenue Impacts of the Planned East African Community Customs Union

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  • Lucio Castro

    (Maxwell Stamp PLC)

Abstract

The paper provides empirical estimates for import and revenue implications that would follow implementation of the planned customs union between the East African Community member states Kenya, Tanzania, and Uganda. We use 2002 trade and trade policy data for the three countries to simulate the effect of the common external tariff and other trade policy changes that will follow the customs union implementation on import flows and customs revenue. We also discuss customs exemptions and the effect of the customs union implementation on balance of payments.

Suggested Citation

  • Lucio Castro, 2005. "Regional Trade Integration in East Africa: Trade and Revenue Impacts of the Planned East African Community Customs Union," International Trade 0509005, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpit:0509005
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    References listed on IDEAS

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    1. Schiff, Maurice & Winters, L. Alan, 2002. "Regional cooperation, and the role of international organizations and regional integration," Policy Research Working Paper Series 2872, The World Bank.
    2. Busse, Matthias & Shams, Rasul, 2003. "Trade Effects of the East African Community: Do We Need a Transitional Fund?," Discussion Paper Series 26290, Hamburg Institute of International Economics.
    3. Ritva Reinikka & Paul Collier, 2001. "Uganda's Recovery : The Role of Farms, Firms, and Government," World Bank Publications - Books, The World Bank Group, number 13850, December.
    4. Schiff, Maurice, 1996. "Small is beautiful : preferential trade agreements and the impact of country size, market share, efficiency, and trade policy," Policy Research Working Paper Series 1668, The World Bank.
    5. 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.
    6. Bernard Hoekman & Francis Ng & Marcelo Olarreaga, 2002. "Eliminating Excessive Tariffs on Exports of Least Developed Countries," The World Bank Economic Review, World Bank, vol. 16(1), pages 1-21, June.
    7. Krueger, Anne O., 1997. "Free trade agreements versus customs unions," Journal of Development Economics, Elsevier, vol. 54(1), pages 169-187, October.
    8. Mr. Reint Gropp & Mr. Liam P. Ebrill & Ms. Janet Gale Stotsky, 1999. "Revenue Implications of Trade Liberalization," IMF Occasional Papers 1999/007, International Monetary Fund.
    9. Vousden,Neil, 1990. "The Economics of Trade Protection," Cambridge Books, Cambridge University Press, number 9780521346696.
    10. Schiff, Maurice, 1997. "Small is Beautiful: Preferential Trade Agreements and the Impact of Country Size, Market Share, and Smuggling," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 12, pages 359-387.
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    Cited by:

    1. Kishor, N. Kundan & Ssozi, John, 2009. "Is the East African Community an Optimum Currency Area?," MPRA Paper 17645, University Library of Munich, Germany.
    2. Walkenhorst, Peter, 2005. "Trade Policy Developments in Tanzania: The Challenge of Global and Regional Integration," MPRA Paper 23399, University Library of Munich, Germany.
    3. Walkenhorst, Peter, 2006. "Uganda’s Access to Global and Regional Markets," MPRA Paper 23575, University Library of Munich, Germany.

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    More about this item

    Keywords

    International Trade; Regional Integration; Africa; East African Community (EAC); Fiscal Impacts; Balance of Payments Effects of Trade Integration;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business

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