Free Movement of Persons and Bilateral Trade in COMESA: Evidence from Kenya

Abstract

The study assesses free movement of persons on bilateral trade between Kenya and its trading partners in the Common Market for Eastern and Southern Africa. The study employed the Panel Correlated Standard Error method to estimate augmented gravity model. The data used covered 17 partners between 2012 and 2021. The findings indicate that the free movement of persons stimulates Kenya's bilateral trade in the Common Market for Eastern and Southern Africa. A unit improvement in the implementation of the no-visa policy requirement stimulates the volume of Kenya's bilateral trade with the partner country by 0.25 per cent. From the findings, Kenya and other Common Market for Eastern and Southern Africa member States could consider fast-tracking the full implementation of free movement of persons efforts put forward by each State to ease the cost of trade in the region.