Examining the Impact of Eritreas Integration into COMESA on its Economic Development

International Journal of Economics and Management Studies

© 2016 by SSRG - IJEMS Journal

Volume 3 Issue 3

Year of Publication : 2016

Authors : PetrosWolduFessehatsion

10.14445/23939125/IJEMS-V3I4P101

How to Cite?

PetrosWolduFessehatsion, "Examining the Impact of Eritreas Integration into COMESA on its Economic Development," SSRG International Journal of Economics and Management Studies, vol. 3,  no. 3, pp. 16-26, 2016. Crossref, https://doi.org/10.14445/23939125/IJEMS-V3I4P101

Abstract:

The relationship between economic growth in Africa and regional economic integration continue to be a popular research area for many scholars especially in the last three decades. Most works in this stream hypothesize that regional economic integration enhances the economy of integrated countries. In this context, the impetus of COMESA envisioned the achievement of economic growth in East Africa through greater economic cooperation and free trade among the member states. Currently the association claims20 member states and Eritrea became signatory in this pact by 1994. This research focused on Eritrea’s engagement in COMESA between 2001 and 2012, and the impact of trade in the domestic economic development. The paper assessed the contribution of trade and foreign direct investment (FDI) to its GDP as a result of joining the COMESA bloc. It has utilized descriptive analysis of secondary data collected mainly from the COMESA database, World Bank database and UNCTAD database. The preliminary findings indicated that no remarkable benefits were gained as a result of participation in the bloc. And based on findings, the paper concluded that, although the trade volume between Eritrea and other member states got enhanced, COMESA’s contribution to the overall economic growth in Eritrea remains negligible.

Keywords:

COMESA, Economic Development, Eritrea, Regional Economic Integration.

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