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Implications of Trade Facilitation on Kenya’s Fruits and Vegetables Exports to the European Union

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The purpose of this paper is to examine the impact of trade facilitation on Kenya’s fruits and vegetables exports to the 28 European Union member countries over the period of 2014-2019. Pooled Ordinary Least Square (OLS), Fixed Effect (FE), Random Effect (RE), and two-step system generalized method of moments (GMM) model were estimated. The outcomes indicate linkage between trade facilitation and Kenya’s fruits and vegetables exports to the EU. According to the estimation results, variables that capture trade facilitation such as exporter’s customs efficiency, and quality of air transport infrastructure have a significantly positive effect on exports of fruits and vegetables from Kenya to the EU. In addition, control variables such as domestic production, and Economic Partnership Agreement (EPA) variables have a significantly positive effect on exports of fruits and vegetables. Essentially, landlock and island variables have a negative impact on exports of fruits and vegetables. To the best of the authors’ knowledge, this is the first paper to empirically analyze the impact of trade facilitation of Kenya’s exports of fruits and vegetables to the 28 EU member countries. The study provides substantial evidence to the stakeholders to formulate policies that can boost exports of fruits and vegetables in Kenya.

Abstract

The purpose of this paper is to examine the impact of trade facilitation on Kenya’s fruits and vegetables exports to the 28 European Union member countries over the period of 2014-2019. Pooled Ordinary Least Square (OLS), Fixed Effect (FE), Random Effect (RE), and two-step system generalized method of moments (GMM) model were estimated. The outcomes indicate linkage between trade facilitation and Kenya’s fruits and vegetables exports to the EU. According to the estimation results, variables that capture trade facilitation such as exporter’s customs efficiency, and quality of air transport infrastructure have a significantly positive effect on exports of fruits and vegetables from Kenya to the EU. In addition, control variables such as domestic production, and Economic Partnership Agreement (EPA) variables have a significantly positive effect on exports of fruits and vegetables. Essentially, landlock and island variables have a negative impact on exports of fruits and vegetables. To the best of the authors’ knowledge, this is the first paper to empirically analyze the impact of trade facilitation of Kenya’s exports of fruits and vegetables to the 28 EU member countries. The study provides substantial evidence to the stakeholders to formulate policies that can boost exports of fruits and vegetables in Kenya.

참고문헌 (32)

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