Intra-regional agricultural exports in the East African community

Abstract

This study investigated the causes of intra-EAC agricultural exports. Five Augmented gravity models were estimated using the Pseudo Poisson Maximum Likelihood (PPML) Approach. The study used panel data from UNCOMTRADE, International Financial Statistics and World Development Indicators for the period 2000 – 2012 on the five EAC members. The intra-EAC agricultural exports depended on various factors, including GDP of exporter, GDP of the importer, Exchange rate, distance between the economic centers, language similarities, adjacency and population of the exporter. EAC secretariat and respective governments in EAC should also reduce currency value disparities among the member states as a means of promoting intra-regional agricultural trade. The proposed monetary union and harmonization of currencies would significantly promote agricultural trade within the region. The EAC member states should also enhance border liberalization, as this will also promote intra-regional agricultural trade, among other measures.

Keywords: Intra-regional trade, Agricultural exports, East African Community, Regional Integration