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Agricultural Trade and Economic Growth in East African Community

Author

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  • Ouma, Duncan
  • Kimani, Tom
  • Manyasa, Emmanuel

Abstract

East African Community states, as many other states in the region, depend largely on agricultural activities to boost their economic growth and create employment. Up to 80 per cent of the populace depends on agriculture directly and indirectly for food, employment and income, while about 40 million people in EAC suffer from hunger. The role of trade in economic growth and vice versa cannot be over emphasized. However, whether there is any link between EAC’s regional trade and the region’s economic growth remain unknown. This study therefore investigated the relationship of the agricultural trade with economic growth in East African Community. Several bi-variate Vector Auto-Regressive (VAR) and Vector Error Correction Models (VECM) were also estimated. Granger causality test and Impulse response analysis on trade and economic growth were performed using panel data from UNCOMTRADE, International Financial Statistics and World Development Indicators for the period 2000 – 2012 on the five EAC members and other 77 trade partners. Empirical findings showed mixed results for the different EAC member states. There existed bi-directional relationship between agricultural exports and economic growth in Kenya, uni-directional relationship in Rwanda, and no relationship at all in Burundi, Tanzania and Uganda.

Suggested Citation

  • Ouma, Duncan & Kimani, Tom & Manyasa, Emmanuel, 2016. "Agricultural Trade and Economic Growth in East African Community," African Journal of Economic Review, African Journal of Economic Review, vol. 4(2), July.
    • Handle: RePEc:ags:afjecr:264463
    DOI: 10.22004/ag.econ.264463
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    Cited by:

    1. El Weriemmi, Malek & Bakari, Sayef, 2024. "Exploring the Influence of Agricultural Exports on Economic Growth: Fresh Insights from Upper Middle-Income Nations," MPRA Paper 121660, University Library of Munich, Germany.
    2. A. H. M. Mehbub Anwar & Mohammad Altelmesani & Abdulrahman Alwosheel, 2024. "Unveiling the causal nexus between Saudi’s seaborne trade and economy: evidence from an ARDL model," Journal of Shipping and Trade, Springer, vol. 9(1), pages 1-21, December.
    3. Aragie, E. & Balié, J. & Morales, C. & Pauw, K., 2023. "Synergies and trade-offs between agricultural export promotion and food security: Evidence from African economies," World Development, Elsevier, vol. 172(C).
    4. Leanard Otwori Juma & Aniko Khademi-Vidra, 2019. "Community-Based Tourism and Sustainable Development of Rural Regions in Kenya; Perceptions of the Citizenry," Sustainability, MDPI, vol. 11(17), pages 1-23, August.

    More about this item

    Keywords

    Agricultural and Food Policy;

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