Effect of Transport Infrastructure and Institutions on Inter-Regional Trade in Sub-Saharan Africa

Abstract

The study investigates the role of transport infrastructure and quality of institutions on trade between the East African Community and three other regional blocs in Sub-Saharan Africa using panel data for the period between 2000 and 2018. By employing gravity model for trade and Poisson-Pseudo Maximum likelihood estimator, the study finds that transport infrastructure facilitates inter- East African Community trade. Additionally, improvements in regulatory quality of the East African Community Partner States and control of corruption of the importing regional blocs have positive effect on East African Community’s exports. The findings therefore suggest the need for additional investment in transport related infrastructure and improvement in quality of institutions of the East African Community Partner States for more trade.