Uganda's Revealed Comparative Advantage: The Evidence with the EAC and China

Uganda's Revealed Comparative Advantage: The Evidence with the EAC and China
This paper examines the comparative advantage of Uganda's exports to the East African Community (EAC) partner states, and how it has evolved during the implementation of the EAC treaty. The paper also seeks to identify commodities that Uganda should specialise in as a basis to enhance the benefits of the preferential treatment extended to Uganda by China. It is evident that Uganda's list of commodities for exports to the EAC partner states is rapidly expanding and its Revealed Comparative Advantage (RCA) has increased, especially during the implementation of the Customs Union. This can perhaps be explained by the removal of internal tariffs along Uganda's borders with EAC partner countries and the adoption of a common external tariff. The paper therefore recommends that the identified list of commodities with the RCA should be the basis for strategically informing the Uganda industrialisation strategy within the context of further EAC integration. Uganda should explore policy options that could address supply constraints in a bid to increase the range of products Uganda could export to China, as well as the regional partner states.
Date: 2011-09-09
Author: Isaac Shinyekwa & Lawrence Othieno
File Name: Ugandas Revealed Comparative Advantage - Evidence with EAC and China - RS 80.pdf
File Size: 2.62 MB
File Type: application/pdf
Created Date: 09-09-2011
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