Effects of regional integration on economic growth of East African community
Muriuki, Tina K.
Kosimbei, G. K.
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This study looks into regional integration and how economic growth has affected it. Regional integration enables partner states to come together and form a group where they could promote economic and political cooperation among themselves. African countries have evolved from colonized and struggling nations to a new phase of independence. In this paper, the researcher examined the history of regional integration in East African Community, what motivated it, the different initiatives that EAC governments had pursued to improve regional integration, the nature of the integration process, and the current challenges. This paper examines empirically whether and how regional integration has affected economic growth amongst the EAC partner states. Panel data was carried out over the period of 1977-2014 for all the EAC partner states. In the findings, Terms of Trade and Foreign Direct Investments had a significant positive correlation with Gross Domestic Product growth, Exchange Rate had a significant negative correlation with Gross Domestic Product growth and Inflation Rate had insignificant negative correlation with Gross Domestic Product growth.