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Regional Integration and Trade in Agrifood Products: Evidence from the East African Community

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  • Francis Ejones

Abstract

This study examines the postulation that trade liberalization (regional integration) policies of LDCs normally undermine their presumed impact. The study is based on the experience of EAC trade agreement. It adopts the extended gravity model, to analyze the impact of this regional integration on food item. The model includes 168 countries and is estimated with panel data over the period 1988 – 2009. The Poisson estimation method took into account unobserved trade data characteristics of the bilateral trade relations. The results show that regional trade integration increased exports, normally at the expense of exports and welfare of non-members, and these exports were more reflective of food exports growth. The same has not been true for intra-bloc exports of food although the sector experienced an increase in exports resulting from the implementation of a trade agreement. The intra-bloc results are consistent with the structural rigidities of the exporting EAC Countries.

Suggested Citation

  • Francis Ejones, 2015. "Regional Integration and Trade in Agrifood Products: Evidence from the East African Community," Journal of Global Economy, Research Centre for Social Sciences,Mumbai, India, vol. 11(3), pages 212-246, September.
    • Handle: RePEc:jge:journl:1134
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    Cited by:

    1. Ward, Megan & Herr, Hansjörg & Pédussel Wu, Jennifer, 2020. "South Asian Free Trade Area and food trade: Implications for regional food security," IPE Working Papers 148/2020, Berlin School of Economics and Law, Institute for International Political Economy (IPE).

    More about this item

    Keywords

    Regional Integration; Trade in Agrifood or Food Items or Products; EAC; Gravity Model and Poisson; Panel Data Analysis.;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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