Browsing by Author "Fredy, Josephat Magita"

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    Characteristics of intra- regional merchandise trade and economic growth in the East African community region
    (University of Dar es Salaam, 2014) Fredy, Josephat Magita
    The study examines the characteristics of intra- EAC trade in the three founder member states of the East African Community and its link to economic growth. It employs export sophistication measure as a measure for the characteristics of intra regional trade, product classification to determine the characteristics of intra- EAC trade. The study finds out that Intra- EAC merchandise trade is mainly characterized by low levels technology evidenced by trade in the simple metal parts from iron and steel, paper and paper board and articles thereof. Merchandise trade in the region is largely resource and agro based, dominated by natural resources such as mineral fuels, agro based products such as paper and paperboard, animal and vegetable fats. Most of the products are low quality segments and are based on simple technologies. In the econometric analysis the study finds out that there is a positive link between merchandise trade export sophistication and economic growth in the EAC region. Institutional quality, human capital and foreign direct investment are positively correlated to export sophistication. Therefore in order for intra –regional merchandise trade to immensely contribute to economic growth in the EAC region, the Member States need to invest in human capital development, development of trade supporting institutions to be trade supporting rather than impeding trade and create a closer link between industries and research institutions.