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Uganda's policy reforms, industry competitiveness and regional integration: a comparison with Kenya

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  • Eckhard Siggel
  • Germina Ssemogerere

Abstract

The paper reviews, first, Uganda's economic policies affecting the industrial sector and analyses the international competitiveness of Uganda's manufacturing industries, using a sample of 21 firms in 12 industries. It computes indices of comparative advantage, export and domestic competitiveness and compares the Ugandan indicators with those of Kenyan firms. It also identifies the main sources and obstacles to competitiveness using a decomposition method, which breaks the unit cost indices down into their main components. The study is timely as Uganda is re-establishing a free trade zone with Kenya and Tanzania, and also faces liberalized trade with the rest of the world. The numerical results of the study suggest that Ugandan firms, although not generally cost-competitive with Kenyan and other international firms, due to the country's land-locked geography and its de-industrialization under the preceding political regimes, have benefited from a recently established business-friendly environment and are more competitive in several industries than is generally assumed. This means that they may not be able to export internationally, but they are likely to hold their ground against Kenyan imports under regional free trade.

Suggested Citation

  • Eckhard Siggel & Germina Ssemogerere, 2004. "Uganda's policy reforms, industry competitiveness and regional integration: a comparison with Kenya," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 13(3), pages 325-357.
    • Handle: RePEc:taf:jitecd:v:13:y:2004:i:3:p:325-357
    DOI: 10.1080/0963819042000240057
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    Citations

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    Cited by:

    1. World Bank, 2007. "Uganda - Moving Beyond Recovery : Investment and Behavior Change, For Growth, Volume 1. Summary and Recommendations," World Bank Publications - Reports 7576, The World Bank Group.
    2. Marios Obwona & Isaac Shinyekwa & Julius Kiiza & Eria Hisali, 2014. "The Evolution of Industry in Uganda," WIDER Working Paper Series wp-2014-021, World Institute for Development Economic Research (UNU-WIDER).
    3. Eckhard Siggel, 2006. "International Competitiveness and Comparative Advantage: A Survey and a Proposal for Measurement," Journal of Industry, Competition and Trade, Springer, vol. 6(2), pages 137-159, June.
    4. World Bank, 2007. "Uganda - Moving Beyond Recovery, Investment and Behavior Change, For Growth, Volume 2, Overview," World Bank Publications - Reports 7574, The World Bank Group.
    5. Eckhard Siggel, 2007. "Economic reforms and their impact on the manufacturing sector: lessons from the Indian experience," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 14(1), pages 73-104, June.
    6. Shinyekwa, Isaac & Othieno, Lawrence, 2011. "Uganda's revealed comparative advantage: the evidence with the EAC and China," Research Series 150474, Economic Policy Research Centre (EPRC).
    7. Obwona, Marios & Shinyekwa, Isaac & Kiiza, Julius, 2014. "The evolution of industry in Uganda," WIDER Working Paper Series 021, World Institute for Development Economic Research (UNU-WIDER).

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