KENYa-CHINA TRADE ON MANUFACTURED GOODS:COMPLEMENTARITY AND INTENSITY

摘要

With the main objective being to analyze the competition,complementarity and intensity of Kenya China trade on manufactured goods,this research paper uses Revealed Comparative Index,Trade Complementarity Index and Trade Intensity for analysis.
　　Results indicate that trade on manufactured goods between Kenya and China is highly complementary.Kenya generally has a comparative disadvantage in manufactures hence lack competitiveness while China's comparative advantage is very strong hence highly competitive products.Kenya's exports hardly complement China's imports while China exports highly complement Kenya's imports hence the high imports of manufactures from China to Kenya.Research on trade intensity shows that Kenya's products penetration to China is low;hence Kenya under exports to China on manufactured goods while China's exports to Kenya are normal and as expected.This implies that there's potential room for growth for Kenya's exports to China.Thus,Kenya should bring out its comparative advantages and modify its product composition and structure of exports in manufactured goods which will aid to realize mutual benefit and cooperation on bilateral trade between both countries i.e.,Kenya and China.An analysis of the constraints hindering Trade on manufactured goods shows that Poor business environment in Kenya and lack of a sound trade policy between Kenya and China are the major challenges among others.
　　This paper is divided into six parts.The first part is the introduction;the second part provides a review of the previous literature on this topic.The third part provides a theoretical basis,giving a basic expression of the Ricardian Model-Labour productivity and Comparative Advantage;Resources and Trade:The Heckscher-Ohlin Model and The Theory of Competitive Advantage of Nations.The fourth part presents reality on trade between Kenya and China in manufactured goods based on the results and discussion of the findings,the fifth part discusses the challenges facing Kenya China trade on manufactured goods while the sixth and last part provides a conclusion and the recommendations.

目录

声明

ACKNOWLEDGEMENTS

ABSTRACT

Table of Contents

List of Acronyms

1．INTRODUCTION

1．1 Background

1．2 Objectives of the Study

1．3 Research Methodology

1．3．1 Qualitative analysis

1．3．2 Quantitative analysis

1．3．3 Data sources and collection

1．3．4 Data Analysis and Presentation

1．4 The Research Route

1．5 Structure of the Research

2．LITERATURE REVIEW

2．1 Literature on Kenya-China Trade

2．1．1 Kenya China Bilateral Trade

2．1．2 Kenya-China Trade on manufactured goods

2．1．3 Gains and losses of trade in manufactured goods

2．2 Literature on Africa-China Trade

2．2．1 Africa-China bilateral trade and its trend

2．2．2 Africa-China Trade on manufactured goods

2．2．3 Gains and losses on the manufactured goods

2．3 Overview of the literature review

3．THEORITICAL BASIS

3．2 Resources and Trade：The Heekscher-Ohlin Model

3．3 The Theory of Competitive Advantage of Nations

4．CURRENT SITUATION ON KENYA AND CHINA TRADE ON MANUFACTURED GOODS

4．1 The nature of Trade on Manufactured Goods between China and Kenya

4．1．1 China Is a Major Source for Kenya Imports

4．1．2 Analysis of Kenya imports from China compared to India

4．1．3 Kenya mainly imports manufactured goods from China

4．1．4 Kenya is not an important import market for China

4．1．5 Kenya exports of manufactured goods makes a very small proportion of its total exports to China

4．1．6 Kenya exports of manufactured goods to EAC，USA，UK compared to China

4．2 Trends and changes in Kenya exports to China in manufactured goods

4．3 Trade Complementarity and competitiveness between Kenya and China on manufactured goods

4．3．1 Revealed Comparative Advantage

4．3．2 Intensity of the trade between Kenya and China on manufactured goods

4．3．3 Trade Complementarity

4．4 Discussion of Results

4．4．1 The nature of trade on manufactured good between Kenya and China

4．4．2 Competitiveness of manufactured goods between Kenya and China

4．4．3 Intensity of Kenya and China’s trade on manufactured goods

4．4．4 Trade complementarity in manufactured goods

5．CHALLENGES OF KENYA-CHINA TRADE ON MANUFACTURED GOODS

5．1 Trade policy and Stringent rules of origin

5．2 Poor business environment

5．3 Financial Access

5．4 Market access

5．5 Low productivity in Manufacturing

5．6 Accumulation and Innovation

5．7 Effects of Devolution

5．8 Political stability and ethics

6．CONCLUSION AND THE RECOMMENDATIONS

6．1 Conclusion

6．2 Policy Recommendations

6．3 Limitations of the study and further research

References

APPENDICES