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Uganda's Intra-East African Community Customs Union Trade Performance in Comparison to other Trading Blocs: A Gravity Model Analysis

Author

Listed:
  • Isaac M.B Shinyekwa

    (Department of Trade, Regional Integration and Multilateral Arrangements at the Economic Policy Research Center)

  • Lawrence Othieno

    (Trade, Customs and Monetary Affairs)

Abstract

The paper estimates determinants of Uganda's trade flows and compares the performance of the different trade blocs on Uganda's trade. The empirical question is whether Uganda's trade is getting more integrated in the EAC region or is still dominated by other trading blocs. The augmented gravity model is applied. The panel data are extracted from COMTRADE for the period 2001 - 2009. Uganda's trade flows have conspicuously adjusted to the gravitational forces of the EAC during the progress of the integration. Whereas exports are being integrated more into the EAC and COMESA regions, imports are also integrated into these regions as well as in the Asian and EU trading blocs. To continue consolidating and deepening the trade gains within the EAC, Uganda should implement the frameworks, protocols and provisions of the treaty and seek industrialization as a priority.

Suggested Citation

  • Isaac M.B Shinyekwa & Lawrence Othieno, 2016. "Uganda's Intra-East African Community Customs Union Trade Performance in Comparison to other Trading Blocs: A Gravity Model Analysis," Journal of African Development, African Finance and Economic Association (AFEA), vol. 18(1), pages 99-111.
    • Handle: RePEc:afe:journl:v:18:y:2016:i:1:p:99-111
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    Cited by:

    1. David Oluseun Olayungbo & Badar Alam Iqbal, 2021. "An empirical analysis of African trade blocs effects on the global economy: new evidence from the gravity model," Future Business Journal, Springer, vol. 7(1), pages 1-11, December.

    More about this item

    Keywords

    Gravity model; imports; exports; intra-trade; trade flows; blocs; regional integration; panel; random and fixed effects.;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

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