Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/283884 
Year of Publication: 
2024
Series/Report no.: 
Kiel Working Paper No. 2245
Version Description: 
This Draft: February 8, 2024
Publisher: 
Kiel Institute for the World Economy (IfW Kiel), Kiel
Abstract: 
Using detailed global trade and novel Multi-Region Input-Output (MRIO) data, this paper examines the East African Community's (EAC) global and regional integration through trade, global, and regional value chains (GVCs and RVCs). With surgical attention to detail, the first part of the paper dissects key patterns and trends of EAC members' participation in global and regional trade and production networks at the aggregate, bilateral, sectoral, and bilateral-sectoral levels. The second part then provides causal reduced-form evidence for the economic benefits of EAC integration through trade, GVCs, and RVCs at the sector level. Findings imply that the region is moderately integrated into GVCs and RCVs but shows no overall trend towards greater integration. Regional integration is advancing in agriculture and food processing, and Kenya is becoming a more dominant regional supplier of manufactures. Integration through trade and GVCs positively affects economic development in the region, particularly deeper forward GVC linkages in manufacturing. Deepening regional trade and forward linkages yields additional economic benefits vis-a-vis global linkages.
Subjects: 
GVCs
RVCs
EAC
trade
regional integration
economic development
JEL: 
F14
F15
O11
Document Type: 
Working Paper

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