African Public Policy Analysis (Political Science focus) | 15 December 2001
Comparative Econometric Techniques in Analysing Regional Economic Blocs in African States: A Methodological Framework for Kenya and Neighboring Countries
E, l, i, a, s, M, w, a, n, g, i
Abstract
The study explores regional economic blocs within African states, focusing on Kenya and its neighboring countries. This article introduces comparative econometric methodologies specifically tailored for assessing regional economic blocs. It utilizes time-series data from Kenya and its neighbors, applying statistical models such as Vector Autoregression (VAR) and Granger Causality tests. The analysis reveals significant interdependencies between the economies of Kenya and Tanzania in terms of trade flows and investment patterns, with a notable proportion (45%) of economic activities influenced by each other across two years. This study establishes a robust methodological framework for econometric analysis of regional blocs in Africa, particularly useful for policy makers aiming to enhance economic integration. Future research should expand the scope to include more countries and incorporate additional econometric techniques to validate findings across different regions. Econometrics, Regional Blocs, African Studies, Kenya, Comparative Analysis