Pros And Cons Of Regional Integration

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5 Conclusion and Recommendations
The conclusions in this chapter deal with answers to the main research problem: what are the main determinants of the direction of trade flows in the East African Community (EAC) regional economic bloc? It also answers the sub-question of “does membership in EAC help partner states increase their trade volume”? In other words, it answers the question that whether membership has helped boost intra-regional trade. Based on the research results, conclusions on theoretical and empirical implications are drawn, and last but not least, recommendations that could be considered in boosting intra-regional trade are proposed.

This research examined the theoretical basis and empirical success of one of Africa’s successful
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Countries have been aggressively negotiating for the formation of new integration projects and the extension of existing regional integration communities for decades. They were mainly inspired by the success of some of the front runners in regionalism, for instance, the European Union (EU) and North American Free Trade Area (NAFTA). In Africa, regionalism became a vogue in 1960s and 1970s, the time when most African countries were getting political independence from their colonial powers, although there had been some cooperation initiatives among protectorates of the same colonial power before. Most of them, however, were proved to be ineffective in delivering their objectives and in the worst case scenario, some of them were collapsed amid disagreements among member states, one of which was East African Community. But since its re-establishment in 2000, EAC, seems to be in the right track and has gone deep in the integration process as compared to other regional integrations in the continent. Its success is expected to improve competition, allow economies of scale, reduce transaction cost, allow free movement of capital and labor across national borders, attract more foreign direct investment, and on top of that, make macroeconomic policy coordination much easier. Some of these advantages of regional integration have already been met…show more content…
This chapter is divided in to two broad categories. The first part, on the one hand, looks at the theoretical foundation and empirical applicability of the gravity trade model and provides extensive review of available literature on the subject. The second part, on the other hand, talks about theoretical basis for and economic rationale behind the formation of regional integration projects in general. It further discusses theories of regional integration for developing countries in particular and makes a review of empirical studies in relation to integration communities in Africa. Finally, it presents some factual events and the progress made thus far in East African Community

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