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Assessment of Intra-trade Intensity within Common Market for Eastern and Southern Africa.

Open Access
Journal Type:Research Article
Subject Field:Business and Economic Development
Downloads:753
Publish Date:February 15, 2022 7:00 pm
Views:789
Volume:95, Issue: 1, February, 2022
Subject:Business Studies
Pages:47-83

Abstract

Utilizing panel data, this study looked at the intra-trade intensity within the Common Market for Eastern and Southern Africa (COMESA) region from 2000 to 2016, with a particular focus on export trade. To quantify the intensification of trade among member states, the study employed the trade intensity index. The results of the Trade Intensity Index (TII) show that, while intra-COMESA trade remains low for the majority of members, the intensity result appears to be increasing at a modest rate at the regional level. According to the study, the regional trade strength of intra-COMESA exports climbed from 11% in 2000 to 13.6 percent in 2016. Egypt and Kenya, in particular, have increased their export trade among COMESA members, whereas Libya has the smallest export trade share, followed by Eretria. To expand bilateral trade among member states, it is recommended that COMESA members invest in complementary products (export diversification) where they have a comparative advantage by identifying priority products in the region, improving economic size, implementing the AU's 2012 declaration of Continental Free Trade Area (CFTA), developing regional transport infrastructure, and strengthening institutional democracy.

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