Volume 4, Issue 1, February 2015, Page: 11-20
Regional Economic Integration and Exports Performance in the COMESA Region (1980-2012)
Henry Tumwebaze Karamuriro, Department of Economics and Statistics, Kyambogo University, Kyambogo, Kampala, Uganda
Received: Jan. 29, 2015;       Accepted: Feb. 6, 2015;       Published: Feb. 11, 2015
DOI: 10.11648/j.ijber.20150401.12      View  2507      Downloads  198
Abstract
One of the major development challenges facing Africa has been the small and fragmented economies with low incomes and low level of intra-regional exports. In an effort to promote intra-regional exports, Africa has witnessed renewed momentum for regional integration. This study examines the effect of regional economic integration on exports in the COMESA region. It employs the fixed effects regression, random effects regression and instrumental variables GMM regression to estimate an augmented trade gravity model using panel data from 1980 to 2012. The study results show that the formation of COMESA trading bloc has promoted intra-regional exports, implying intra-COMESA export bias. Comparing pre-COMESA (1980-1993) and post-COMESA (1994-2012) periods, it was found that intra-COMESA exports have grown by approximately 35 percent since COMESA was formed. This suggests that in order to enhance export flows in the region, the process of economic integration should be deepened. Thus, there is need for increased investment in transport infrastructure that will reduce long distance cost of doing business. This would have a major impact on deepening integration of COMESA economies.
Keywords
Regional Economic Integration, Exports, Gravity Model, Instrumental Variables GMM Regression
To cite this article
Henry Tumwebaze Karamuriro, Regional Economic Integration and Exports Performance in the COMESA Region (1980-2012), International Journal of Business and Economics Research. Vol. 4, No. 1, 2015, pp. 11-20. doi: 10.11648/j.ijber.20150401.12
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