Effect of East African Regional Integration on Intra-Regional Trade: A case of Uganda 1999 - 2016
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Date
2017-06
Authors
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Publisher
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