TITLE:
Research on EAC-China Economic Relations in Trade and Its Influences: An Analysis Based on Trade Intensities
AUTHORS:
Aimé Jésus Umuhoza, Jianfeng Wang
KEYWORDS:
Trade, Trade Intensities, EAC-China, Trade Cooperation, Comparative Advantage
JOURNAL NAME:
Chinese Studies,
Vol.10 No.2,
May
28,
2021
ABSTRACT: This
study analyzes the economic cooperation between EAC and China across the trade
development based on the trade intensities. It shows its influence on EAC countries welfare and puts
frontwards pertinent countermeasures to improve the troubles. The indices of
the export intensity and the import intensity index are used to analyze the
intensity of existing trade for the period 2000-2019. The impacts of
comparative advantage on EAC-China imports
and exports are considered. Our findings show that due to EAC-China
bilateral trade agreements, EAC and China trade overall has increased over the
years, even if they have been marked by fluctuations. From the results, we find
also that unfortunately the EAC still has a trade deficit with China. In
addition, for the future bilateral trade, we moved forward suggestions that the
Community must improve its productive capacity to consolidate its trade
intensity to branch out exports and enter the Chinese market. In the end, it
provides new understanding of the economic cooperation in trade between EAC and
China.