Socioeconomic and Institutional Quality Effect of Regional Trade Agreements: A Case Study of East African Community Regional Integration

摘要

This dissertation focuses on regional economic integration in the East African Community. It examines the effect of regional trade agreements and institutional quality on exports and imports of the five East African community members with 59 selected partner countries from 2002-2014 using gravity models. It also explores the historical evolution to gain a deeper understanding of the complex socioeconomic factors that surrounds regional integration process.;It is clear that international trade over the centuries has shaped trade relations around the world. More importantly, the dynamic nature of mercantilism, regionalism, and globalization to the current stage of the second wave of regionalism has cast doubt on the future direction and sustainability of regional integration groupings. Several studies that cover East African community have used the gravity model and other quantitative methods to analyze the importance of regional integration. However, little has been done qualitatively on the role of history and the effect of institutional quality factors.;The results from gravity models reveal that regional integration agreements positively affect the EAC trade when exporting to India and adversely affects exports to EU. Imports are enhanced when the EAC has trade agreements with China, and India with a positive and significant coefficient. The three institutional quality variables used shows that political stability affects export trade positively and imports negatively. The rule of law is significant and positive for imports only, while regulatory quality provides no evidence of any significant impact on exports and imports.;This dissertation anticipates contributing to the field of regional integration and economic development by expanding the literature and understanding of the EAC regional integration by incorporating multidisciplinary and humanistic perspectives. The study suggests a holistic solution-oriented approach that focuses on patriotism, policy implementation, collaboration, and welfare in mitigating regional integration challenges and promises that yields a stronger and explanatory narrative.