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 thernco ntext of trade promotion and trade development. Based on this fact, the main objectivernof this study was to analyze the impact of trade facilitation measures on exports andrnimports among COMES A countries with special emphasis on trade flows betweenrnEthiopia and Kenya. To achieve this basic objective, an augmented gravity model wasrnanalyzed using both descriptive and econometric methods of analysis by using datarncovering the period of 2004 through 20 I O. The study constructed five indicators of tradernfacilitation measures from a total of 13 indicators from the Global CompetitivenessrnReport. The basic findings are as follows: The number of trade documents wasrnsignificantly associated with imports and this clearly shows the barrier posed by the highrnnumber of documents required to import. Although the cost of transport and time tornimport had the expected signs, they were not significantly different from zero. Real GDPrnand population were associated with the trade flows but the association was weak. Basedrnon these findin gs, there is need for trade and institutional reforms focusing on red ucingrnthe number of customs documents and eventual complete elimination of documentsrnrequired to import in the COMESA to boost trade flows. Efforts at addressing tradernfacilitation should also encourage fast tracking of a monetary union so that exchange raternvariation effects on trade flows is completely eliminated.

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Trade Facilitation And Trade Flows In The Comesa Case Study Of Ethiopia And Kenya

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