Research on EAC-China Economic Relations in Trade and Its Influences: An Analysis Based on Trade Intensities

摘要

This study analyzes the economic cooperation between EAC and China across the trade development based on the trade intensities. It shows its influence on EAC c ountries welfare and puts frontwards pertinent countermeasures to improve the troubles. The indices of the export intensity and the import intensity index are used to analyze the intensity of existing trade for the period 2000-2019. The impacts of comparative advantage on EAC-China imports and exports are considered. Our findings show that due to EAC-China bilateral trade agreements, EAC and China trade overall has increased over the years, even if they have been marked by fluctuations. From the results, we find also that unfortunately the EAC still has a trade deficit with China. In addition, for the future bilateral trade, we moved forward suggestions that the Community must improve its productive capacity to consolidate its trade intensity to branch out exports and enter the Chinese market. In the end, it provides new understanding of the economic cooperation in trade between EAC and China.