Is intraregional trade an opportunity for industrial upgrading in East Africa?

Hyeseon Na

Oxford Development Studies, 2019, vol. 47, issue 3, 304-318

Abstract: Regional integration has been promoted in Africa for decades. However, the potential effects of regional integration on Africa are still contested. To analyse whether intraregional trade can be an opportunity to stimulate product or intersectoral upgrading in East Africa, this paper compares the technological level of goods in intraregional and extra-regional trade of five East Africa countries. It finds that the five East Africa countries have performed better in exporting technology-based products to intraregional trading partners than to extra-regional ones. This result suggests the continued expansion of intraregional trade will be helpful for these nations to upgrade their existing industrial base through the growth of technology-based sectors. In addition, because they import larger amounts of technology-based products from extra-regional partners, gradual import substitution could be also an effective strategy to further diversify and upgrade industries.

Date: 2019
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DOI: 10.1080/13600818.2019.1570105

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