TRANSPORT INFRASTRUCTURE, INSTITUTIONS and INTER-REGIONAL TRADE IN SSA: THE CASE OF INTER-EAC TRADE
The study investigates how transport infrastructure and quality of institutions impacts inter-regional trade. The focus is on inter-regional trade in Sub-Saharan Africa (SSA), specifically, trade between East African Community (EAC) and three other regional economic communities in SSA, namely, SADC, ECOWAS and ECCAS. The data was mainly collected from WDI of the World Bank (data for macro variables), exports data from DOTS of IMF, transport infrastructure data from AfDB, distance and other dummy variables were collected from CEPII database. Description and labeling of the variables used in the regression has been done in in sheet 4 of the excel file attached. The data is in 3 excel sheets, for EAC-SADC, EAC-ECOWAS and EAC-ECCAS respectively. The results indicate positive impact of transport infrastructure and quality of institutions to inter-EAC exports.
Steps to reproduce
1. Transform variables with large values such as distance, population, gdp, and land area. 2. You can describe the data through descriptive statistics. 3. Test for stationarity of different variables in the regression models 4. Make non-stationary variables stationary by differencing 5. Include the variables for regression after step (4) 6. Conduct post-estimation diagnostic tests 7. Correct for any problems detected in the regressed model 8. Conduct your final regression to get the results for inter-EAC trade