Journal of World Economic Research
Volume 2, Issue 4, August 2013, Pages: 67-74
Received: Aug. 14, 2013;
Published: Aug. 30, 2013
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Manaseh Otieno, Kenya Institute for Public Policy Research and Analysis (KIPPRA), Nairobi, Kenya
Eliud Moyi, Kenya Institute for Public Policy Research and Analysis (KIPPRA), Nairobi, Kenya
Dickson Khainga, Kenya Institute for Public Policy Research and Analysis (KIPPRA), Nairobi, Kenya
Peter Biwott, Commission for Revenue Allocation, Nairobi, Kenya
This study investigates the effect of regional integration on Foreign Direct Investment in East Africa Community countries. We apply Generalised Least Squares to examine this relationship. Regional integration did not have any effect on Foreign Direct Investment flows into the region. The degree of political risk and financial stability were positive and significant. The study recommends that Kenya and the other East Africa Community countries should institute political reforms to accompany integration in order to improve the country’s ratings in terms of the degree of political risk. They should also maintain a stable exchange rate regime.
Regional Integration and Foreign Direct Investment in East African Countries, Journal of World Economic Research.
Vol. 2, No. 4,
2013, pp. 67-74.
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