Trade Facilitation and Trade Flows in the Comesa: Case Study of Ethiopia and Kenya

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Trade facilitation is an important aspect and tool for economic development in the co ntext of trade promotion and trade development. Based on this fact, the main objective of this study was to analyze the impact of trade facilitation measures on exports and imports among COMES A countries with special emphasis on trade flows between Ethiopia and Kenya. To achieve this basic objective, an augmented gravity model was analyzed using both descriptive and econometric methods of analysis by using data covering the period of 2004 through 20 I O. The study constructed five indicators of trade facilitation measures from a total of 13 indicators from the Global Competitiveness Report. The basic findings are as follows: The number of trade documents was significantly associated with imports and this clearly shows the barrier posed by the high number of documents required to import. Although the cost of transport and time to import had the expected signs, they were not significantly different from zero. Real GDP and population were associated with the trade flows but the association was weak. Based on these findin gs, there is need for trade and institutional reforms focusing on red ucing the number of customs documents and eventual complete elimination of documents required to import in the COMESA to boost trade flows. Efforts at addressing trade facilitation should also encourage fast tracking of a monetary union so that exchange rate variation effects on trade flows is completely eliminated.



And Trade Flows In The Comesa: