Exports
The East African Community (EAC) was revived in July 2000. Since then, there has been some progress registered in expansion of trade between the five member countries, especially with the Customs Union that brought together Kenya, Tanzania and Uganda in 2004, with Rwanda and Burundi joining in 2008. According to the EAC Development Strategy for 2011/12 to 2015/16, intra-EAC trade grew by 40 percent between 2005 and 2009.
Numerous econometric studies fail to detect a significant and robust relationship between international aid and economic growth in the recipient countries. Dutch Disease effects might be responsible for this result. This paper examines the relation between aid and its effectiveness in a multi-sector multi-household Computable General Equilibrium (CGE)-framework.