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.
| Published in | International Journal of Business and Economics Research (Volume 4, Issue 1) |
| DOI | 10.11648/j.ijber.20150401.12 |
| Page(s) | 11-20 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2015. Published by Science Publishing Group |
Regional Economic Integration, Exports, Gravity Model, Instrumental Variables GMM Regression
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APA Style
Henry Tumwebaze Karamuriro. (2015). Regional Economic Integration and Exports Performance in the COMESA Region (1980-2012). International Journal of Business and Economics Research, 4(1), 11-20. https://doi.org/10.11648/j.ijber.20150401.12
ACS Style
Henry Tumwebaze Karamuriro. Regional Economic Integration and Exports Performance in the COMESA Region (1980-2012). Int. J. Bus. Econ. Res. 2015, 4(1), 11-20. doi: 10.11648/j.ijber.20150401.12
AMA Style
Henry Tumwebaze Karamuriro. Regional Economic Integration and Exports Performance in the COMESA Region (1980-2012). Int J Bus Econ Res. 2015;4(1):11-20. doi: 10.11648/j.ijber.20150401.12
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Download@article{10.11648/j.ijber.20150401.12,
author = {Henry Tumwebaze Karamuriro},
title = {Regional Economic Integration and Exports Performance in the COMESA Region (1980-2012)},
journal = {International Journal of Business and Economics Research},
volume = {4},
number = {1},
pages = {11-20},
doi = {10.11648/j.ijber.20150401.12},
url = {https://doi.org/10.11648/j.ijber.20150401.12},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20150401.12},
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.},
year = {2015}
}
TY - JOUR T1 - Regional Economic Integration and Exports Performance in the COMESA Region (1980-2012) AU - Henry Tumwebaze Karamuriro Y1 - 2015/02/11 PY - 2015 N1 - https://doi.org/10.11648/j.ijber.20150401.12 DO - 10.11648/j.ijber.20150401.12 T2 - International Journal of Business and Economics Research JF - International Journal of Business and Economics Research JO - International Journal of Business and Economics Research SP - 11 EP - 20 PB - Science Publishing Group SN - 2328-756X UR - https://doi.org/10.11648/j.ijber.20150401.12 AB - 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. VL - 4 IS - 1 ER -
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