Revista Internacional de Economia e Ciências de Gestão

Regional Financial integration and economic growth in the East African community

Abstract

Samuel Muthoga, Almadi Obere, Kimani Mburu, Diana Mukwate-Muchai

This paper aimed at establishing effects of regional financial integration on economic growth in East African Community (EAC). Conflicting views on the effects of financial integration on economic growth prompted the study. Quantitative and qualitative data between year 2000 and 2009 from the East African community was used. This paper employed the general method of moments in its analysis. Results showed that regional financial integration significantly stimulated economic growth of the EAC. The study recommends that EAC coordinating committee promote effective bank supervision to achieve uniform bank spread, initiate ways of issuance of common bond and develop secondary markets for all financial assets in the region.