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An Economic Integration Zone for the East African Community : Exploiting Regional Potential and Addressing Commitment Challenges

APPROPRIATIONS ARBITRATION AUTONOMY BANKING STABILITY BARRIERS TO INVESTMENT BENEFICIARIES CAPITAL MOBILITY CAPITAL OUTFLOWS CASH FLOW COLLECTIVE ACTION COMMON MARKET COMPARATIVE ADVANTAGES COMPARATIVE ANALYSIS COMPETITIVE ADVANTAGE COMPETITIVE INVESTMENT COMPETITIVENESS CORPORATE TAX CORPORATE TAXES CREDIBILITY CUSTOMS UNION DECISION MAKING DEMOCRACY DEMONSTRATION EFFECTS DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT ASSISTANCE DEVELOPMENT BANK DEVELOPMENT POLICY DEVOLUTION DISPUTE RESOLUTION DIVESTMENT DOMESTIC ECONOMY DOMESTIC MARKET EAST AFRICAN DEVELOPMENT BANK ECONOMIC CRISIS ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMIC GEOGRAPHY ECONOMIC GROWTH ECONOMIC INTEGRATION ECONOMIC PERFORMANCE ECONOMIC REFORM ECONOMIC REFORMS EMERGING ECONOMIES EMPLOYMENT ENFORCEMENT MECHANISMS EXCISE TAXES EXPENDITURE EXPORT GROWTH EXPORT PROCESSING ZONES EXPROPRIATION EXTERNALITIES FINANCIAL INCENTIVES FINANCIAL SYSTEM FISCAL DISCIPLINE FIXED COSTS FOREIGN CURRENCY FOREIGN DIRECT INVESTMENT FOREIGN DIRECT INVESTOR FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN TRADE GAME THEORY GDP GLOBAL EXPORTS GLOBAL MARKET GLOBAL MARKETS GOOD GOVERNANCE GOVERNMENT POLICIES GOVERNMENT POLICY GROWTH POTENTIAL HOLDING HOME COUNTRY HOST COUNTRIES HOST COUNTRY HOST GOVERNMENT HOST GOVERNMENTS HOUSING INCOME LEVELS INCOME TAX INCOME TAXES INCOMES INDIVIDUAL FIRMS INDIVIDUAL INVESTORS INDUSTRIALIZATION INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE INVESTMENT INFRASTRUCTURE INVESTMENTS INFRASTRUCTURE REQUIREMENTS INSTITUTIONAL ENVIRONMENT INSTITUTIONAL MODELS INSTRUMENT INSURANCE INTERNATIONAL BANK INTERNATIONAL BEST PRACTICE INTERNATIONAL INVESTMENTS INTERNATIONAL INVESTORS INTERNATIONAL LAW INTERNATIONAL MARKETS INTERNATIONAL STANDARDS INTERNATIONAL TRADE INVESTMENT ACTIVITY INVESTMENT CLIMATE INVESTMENT RISK JOB CREATION JOINT VENTURE JUDICIAL SYSTEM JURISDICTION LABOR MARKET LABOR MARKETS LAND PRICES LAND VALUE LAND VALUES LAWS LEGAL AUTHORITY LEGAL CONSTRAINTS LEGAL FRAMEWORK LEGISLATION LEVIES LEVY LICENSES LOCAL ADMINISTRATION LOCAL GOVERNMENT LOCAL GOVERNMENTS LOCAL TAXES MARKET ECONOMIES MARKET ECONOMY MARKET INTEGRATION MARKET REGULATION MUNICIPAL GOVERNMENT MUNICIPAL GOVERNMENTS NATIONAL ECONOMY NATIONAL GOVERNMENTS NATURAL RESOURCE NATURAL RESOURCES OPPORTUNITY COSTS PERSONAL INCOME PERSONAL INCOME TAXES POLITICAL CONSIDERATIONS POLITICAL ECONOMY POLITICAL REGIMES POLITICAL RISK POLITICAL RISK INSURANCE POLITICAL RISKS POTENTIAL INVESTORS PRIVATE INVESTOR PRIVATE MARKETS PRIVATE PARTIES PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PROPERTY RIGHTS PROVINCIAL GOVERNMENTS PROVISIONS PUBLIC PUBLIC GOOD PUBLIC GOODS PUBLIC SERVICE REAL ESTATE RED TAPE REFERENDUM REGIONAL INTEGRATION REGIONAL TRADE REGULATOR REGULATORY AUTHORITY REGULATORY BODIES REMITTANCES REMOTE REGIONS REPUTATION RETURN RETURNS REVENUE COLLECTION REVENUE SHARING RISK PREMIUM RISK PREMIUMS ROADS RULE OF LAW SALES TAXES SETTLEMENT SHAREHOLDERS SINGLE MARKET STATE OWNED ENTERPRISES STRUCTURAL CHANGE STRUCTURE OF GOVERNANCE SUNK COSTS SURCHARGES TARIFF BARRIERS TAX TAX REGIME TAX REGIMES TAX REVENUE TAX REVENUES TELECOMMUNICATIONS TRACK RECORD TRADE BARRIERS TRADE FLOWS TRADE POLICIES TRANCHE TRANSACTIONS COSTS TRANSPORT TREATIES TREATY WORLD ECONOMY WORLD MARKET
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Africa | East Africa
2012-03-19T17:29:10Z | 2012-03-19T17:29:10Z | 2012-02-01

Integration in the East African Community offers significant opportunities not only to expand trade among member states, but more importantly to scale up regional production to take advantage of much larger global market opportunities. Special economic zones are a potentially valuable instrument to facilitate the integration of regional value chains in support of this scaling up. They also have the potential to deliver powerful demonstration effects on the benefits of integration and to help entrench the integration process. This paper discusses the proposal for developing an "economic integration zone" in the East African Community. The benefits of such a zone could be substantial, as would be the practical challenges to implementation -- in particular the political economy challenges. However, a number of institutional and commercial solutions exist to address these challenges.

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