The effects of regional integration on trade development in the east African countries

Abstract

The aim of this study was to examine the extent to which regional integration has helped to develop trade among the East African Community (EAC) members. The study examined the effects of trade barriers, infrastructure development and the technological advancement in relation to trade development in the EAC member countries. Data were obtained from the selected government institutions and the private sector in Dar es Salaam and Arusha with questionnaires. The sample size comprised people from the Ministries of EAC, Industry and Trade, Foreign Affairs and International Cooperation, the EAC Secretariat and also from TCCIA. The study applied simple purposefully technique to the studied population which was applied to selected respondents from population whereby only units that were thought to be knowledgeable on the EAC regional integration processes. The questionnaire data were coded using the Statistical Package for the Social Sciences (SPSS 16.0) and the information was analyzed by using descriptive statistics.The main finding shows that the reduced trade barriers, improved infrastructure and technological advancement have significant impact on trade development in the EAC member countries. Thus the study recommends progressive elimination of non-tariff barriers, sustainable improvement in infrastructure and adoption of new technology in running businesses.