Intra Regional Integration

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

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

It is also advisable for partner countries to acknowledge that large portion of costs is due in the short-run, whereas benefit from integration are accrued over a long period of time. By recognizing this fact, it is, therefore, recommended that member countries continue pooling their resources together and exploit their comparative advantage for common benefits.
4. Establishment of strong institutions is key in any kind of cooperation program. For instance, if we take the case of EU, it has got powerful institutions capable of devising common solutions, influencing policy makers in partner countries, and above all, comprised of well-trained and experienced technocrats. Therefore, in order to reap the benefits of regional integration, it is recommended that partner states strive to establish strong common institutions.
5. It is undeniable that EAC has seen continuous trade reforms in the last couple of years. But trade reform by itself is not sufficient to enhance the benefits of integration. Macroeconomic policy change in and coordination among partner states is absolutely vital. Therefore, it is recommended that member states’ macroeconomic policies be harmonized and coordinated so that investors and businesses can find it easy to move their products and business around freely; and this in turn will enhance intraregional trade and