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Competitiveness of East African Exports: A Constant Market Share Analysis

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Trade and Investment in East Africa

Part of the book series: Frontiers in African Business Research ((FABR))

Abstract

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

Authors are thankful to Peter van Bergeijk and Binyam Afewerk Demena of Erasmus University, International Institute of Social Studies for technical guidance in carrying out the research work. The study was financially supported by Research on Poverty Alleviation (REPOA), the African Caribbean and Pacific Group of States (ACP Group) of this project, grant number FED/2019/408-112

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Notes

  1. 1.

    South Sudan has not been included in the analysis because there is no data present or trade between it and other East African countries for some years and for the years for which data was reported, reliability is an issue and also the reported amounts were too small to influence the outcome/result of analysis for the other countries.

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Authors and Affiliations

  1. Refugee Services Department, Ministry of Home Affairs, Dar es salaam, Tanzania

    Harry Thomas Silas Achentalika & Dorah Teddy Msuya

  2. NCBA Bank Tanzania, Dar es salaam, Tanzania

    Dorah Teddy Msuya

Authors
  1. Harry Thomas Silas Achentalika
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  2. Dorah Teddy Msuya
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Correspondence to Harry Thomas Silas Achentalika .

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Editors and Affiliations

  1. International Institute of Social Studies, Erasmus University Rotterdam, The Hague, The Netherlands

    Binyam Afewerk Demena

  2. International Institute of Social Studies, Erasmus University Rotterdam, The Hague, The Netherlands

    Peter A.G. Van Bergeijk

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Achentalika, H.T.S., Msuya, D.T. (2022). Competitiveness of East African Exports: A Constant Market Share Analysis. In: Demena, B.A., Van Bergeijk, P.A. (eds) Trade and Investment in East Africa. Frontiers in African Business Research. Springer, Singapore. https://doi.org/10.1007/978-981-19-4211-2_10

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  • DOI: https://doi.org/10.1007/978-981-19-4211-2_10

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  • Publisher Name: Springer, Singapore

  • Print ISBN: 978-981-19-4210-5

  • Online ISBN: 978-981-19-4211-2

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