Examining the Patterns and Dynamics of Intra-Regional Trade and Revealed Comparative Advantage in the East African Community

What is it about?

The research objectives of this study are: to examine how intra-regional trade intensity changed following the revival of the East African Community; to determine the revealed comparative advantage of member nations; and to investigate how the EAC countries' comparative advantage evolved over time. It uses secondary data and looks at the five EAC member countries for which data is readily available._x000D_ _x000D_ It employs intra-regional trade intensity measures and finds that intra-regional trade increased shortly after the Community's revival, but decreased for the remainder of the study period due to non-tariff barriers. The study examines trade flows from 2001 to 2020 to determine the EAC partner states' comparative advantage, with a focus on product groups that maintained their comparative advantage and how comparative advantage evolved._x000D_ _x000D_ The findings are as follows: all countries had varying degrees of comparative advantage in coffee; all countries' comparative advantage was strong in products exported in raw form, which all retained their comparative advantage; and all countries, with the exception of Rwanda, experienced a loss in comparative advantage._x000D_ _x000D_ Three policy implications emerge: removing trade barriers is critical for improving intra-regional trade; adding value to exported agricultural products is required to increase export earnings; and investigating the causes of loss of comparative advantage is critical for developing targeted measures to reclaim competitiveness._x000D_ _x000D_

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