Effect of East African Regional Integration on Intra-Regional Trade: A case of Uganda 1999 - 2016

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Date
2017-06
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Kampala International University, College of Economics and Management Sciences
Abstract
This study aimed to examine the effect of the East African regional integration on intraregional trade. It was carried out based on three specific objectives: i) to examine the effect of the East African regional integration on Uganda's intra-regional export trade; ii) to examine the effect of the East African regional integration on Uganda's intra-regional impott trade; iii)to examine the effect of the East African regional integration on Uganda's intra-regional foreign direct investment. The study was guided by the neo functionalism theory. The study used explanatory research design and the time series methodology. The study used secondary data sources to gather information relevant in reaching at the research objectives. The secondary data was obtained from the Uganda National Bureau of Statistics reports. A multiple linear regression model using Ordinal Least Squares were used to test the significance of the influence of the independent variable on the dependent variable. Results also indicated that in the long run, the East African regional integration had a positive and significant effect on Uganda's intra-regional export and import trade as well as foreign direct investment within the region. It was concluded that regional integration in East Africa in the long run, had a significant positive effect on Uganda's expott and import trade. The study recommended that; the EAC countries should adopt export diversification strategy in a bid to increase aggregate economic growth; the EAC countries should encourage intra-African regional trade since increase in the volume of trade results to increase in the aggregate GDP.
Description
A dissertation submitted to the College of Higher Degrees and Research in Partial Fulfillment of the Requirements for the Award of the Masters of Business Administration of Kampala International University, Uganda
Keywords
Intra-Regional Trade, Effect, East African Regional Integration, Uganda 1999 - 2016
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