The Impact of Mobile Connectivity and Governance on Regional Trade: An Empirical Analysis of Uganda and EAC
Keywords:
Uganda, East African Community, Trade Volume, Governance, Mobile Connectivity, Gravity ModelAbstract
This study investigates the impact of mobile connectivity and governance on regional trade within the context Uganda’s foreign trade with other East African Community (EAC) states. Mobile connectivity has been considered with the dimensions of FTS (Fixed telephone subscriptions -% of population), IUI (Individuals using the Internet-% of population), MCS (Mobile cellular subscriptions-% of population). Governance is measured by the dimensions of RQ (Regulatory Quality), GE (Government Effectiveness), VA (Voice and Accountability), PSAVT (Political Stability and Absence of Violence/Terrorism), RL (Rule of Law) and CC (Control of Corruption). We utilise panel data of Uganda, Kenya, Tanzania, Rwanda, and Burundi which are 5 of the current 8 members of the EAC whose data is available in the period of 1995 – 2022. We model the trade volume of Uganda with the other states by using the gravity model of international trade. The findings of the Fixed-Effects model indicate that FTS seems to be positively related with trade volume, while MCS seems to be negatively related with trade volume. RQ seems to be positively related with trade volume while GE seems to be negatively related with trade volume. Population Effect is also found to have a positive significant effect.
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