The Effect of Regional Financial Integration on Intra-Regional Trade in the East African Community

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Date
2013-12
Authors
Muthoga, S.
Obere, Almadi
Mburu, Kimani
Muchai, Dianah
Journal Title
Journal ISSN
Volume Title
Publisher
Globalbiz Research,
Abstract
This paper aimed at establishing effects of regional financial integration on intraregional trade in East African Community (EAC). The importance of financial integration on trade prompted the study. Quantitative and qualitative data between year 2000 and 2009 from the East African community was used. This paper employed the general method of moments in its analysis. Results showed that regional financial integration significantly affect intraregional trade in the EAC. The study recommends that EAC coordinating committee promote effective bank supervision to achieve uniform bank spread, initiate ways of issuance of common bond and develop secondary markets for all financial assets in the region.
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Keywords
Regional financial integration, intraregional trade, custom union, free trade area, government security rate, exchange rate, Common external tariff, bank spread
Citation
Journal of Emerging Issues in Economics, Finance and Banking (JEIEFB) An Online International Monthly Journal (ISSN: 2306-367X) Volume:2 No.6 December 2013