AbstractThis study applied the gravity trade model to evaluate Kenya’s benefits from regional
trade within the EAC partner states and the role played by each partner country towards
the growth of Kenyan exports. A panel data analysis was used to accommodate the time
invariant country specific effects and to capture the relationship between the relevant
variables overtime. We found the fixed effects model suitable and preferred to the
random effects gravity model. The study affirmed the gravity model expectations that
National income, population and Distance (proxy for transport costs), are important
determinants of bilateral trade. In addition, openness variable was found to be
insignificant though it had a positive relation with growth of Kenyan Exports. The results
further reveal that Kenya has tremendous trade potential with Uganda, Tanzania and
Burundi hence trade should be encouraged in the bloc.
Wamalwa,Elizabeth;November,2013.Growth Of Kenyan Exports Within EAC Regional BLOC.