The EAC is on the verge of establishing a customs union. But this is accompanied by fears that the Customs Union would lead to trade imbalances among the Partner States, which would create serious problems for the proper functioning of the Customs Union itself. To mitigate these problems the...

Recent studies of border effects have focused on the intra-country and inter-country comparison of trade flows. It is found that borders have a negative impact on the size of cross-border trade. In order to estimate border effects on a regional level one needs not only data on inter-country but...

The main focus of this paper is the question if the success of regional integration organisation in developing countries is, in fact, dependent on factors like similarity of their economic structure, market size or lack of commitment. It is shown that there are also other more important...

The article is based on the idea that geographic proximity is an essential factor for international integration policies due to its impact on the intensity of bilateral foreign trade and growth rate. Development is analysed as a process of structural diversification, whereby the country in...

During the past two decades, international trade in telecommunication services has significantly intensified. What is more, an increasing number of telecommunications operators have begun to expand their activities beyond national borders through FDIs, joint ventures, and cooperation agreements....

To understand the reasons for the formation of regional economic groupings two basic concepts are introduced: association and dissociation. Moreover, the importance of interest groups and strategic groups is discussed, and security and bargaining power as basic political motivations are...

In Africa there has been an immense effort in the past, continuing into the present, to unite politically and to build numerous economic integration areas. In this paper we discuss the reasons for the existence of this phenomenon in Africa which we call the drive to political and economic...

The paper evaluates the economic necessity and political incentives of a transitional fund for the East African Community (EAC). The fund has been proposed to encounter trade imbalances which may arise due to the intended customs union in East Africa. Using a disaggregated approach at the...