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[East African Community (EAC)East African Community (EAC) exports are steadily growing. This performance of exports could be attributed to improving competitivenessCompetitiveness despite fluctuating world trade, but also to the market focus of exporters and/or the composition of the exported commodities. This chapter focuses on competitivenessCompetitivenessof EAC'sEast African Community (EAC) exports using Constant Market Share analysis (CMS)Constant Market Share analysis (CMS) to decompose EAC export growthExport growth by product category (SITC single digit level). Data is from UN ComtradeCOMTRADE database for two periods: Period I (2009–2013) and Period II (2014–2018). The analysis focuses on disentangling the world trade effectWorld trade effect, the commodity composition effectCommodity composition effect and the competitivenessCompetitiveness effect. The reference group for this analysis was the world market. Findings of the study are that the world trade, commodity composition and competitivenessCompetitiveness effects were all positively associated with increased export growthExport growth in EAC from Period I to Period II. Export growth of Standard International Trade Classification single digit-level commodities in EACEast African Community (EAC) was attributed to increased demand for such products in the world market, and the commodities exported had a faster growing demand. Furthermore, there was increased competitivenessCompetitivenessfor EAC'sEast African Community (EAC) products directed towards the selected group of reference countries.]
Published: Nov 2, 2022
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