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Is intraregional trade an opportunity for industrial upgrading in East Africa?

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  • Hyeseon Na

Abstract

Regional integration has been promoted in Africa for decades. However, the potential effects of regional integration on Africa are still contested. To analyse whether intraregional trade can be an opportunity to stimulate product or intersectoral upgrading in East Africa, this paper compares the technological level of goods in intraregional and extra-regional trade of five East Africa countries. It finds that the five East Africa countries have performed better in exporting technology-based products to intraregional trading partners than to extra-regional ones. This result suggests the continued expansion of intraregional trade will be helpful for these nations to upgrade their existing industrial base through the growth of technology-based sectors. In addition, because they import larger amounts of technology-based products from extra-regional partners, gradual import substitution could be also an effective strategy to further diversify and upgrade industries.

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  • Hyeseon Na, 2019. "Is intraregional trade an opportunity for industrial upgrading in East Africa?," Oxford Development Studies, Taylor & Francis Journals, vol. 47(3), pages 304-318, July.
    • Handle: RePEc:taf:oxdevs:v:47:y:2019:i:3:p:304-318
    DOI: 10.1080/13600818.2019.1570105
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    Cited by:

    1. Yassin Elshain Yahia & Haiyun Liu & Abdalla Sirag & Sayyed Sadaqat Hussain Shah, 2020. "The Impacts of Intra-Trade on Industrialization: Evidence from COMESA," Asian Development Policy Review, Asian Economic and Social Society, vol. 8(2), pages 75-101, June.

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