Creation, Dissolution And Rebirth Of An Economic Union And Business Cycles Length. The Case Of Eac (East African Community) And Lessons For Eu

Author's Name: Dimitrios Dapontas
Subject Area: Social Science and Humanities
Subject Economics
Section Research Paper


EAC, developed and developing economies, economic growth.


This paper is explaining the relationship between EAC foundation and temporary dissolution and business cycles length. Has the participation in a multinational organization changed their frequency? How a breakup of this scheme could affect them? This innovative work can explain the effects of leaving or joining a multinational union. Initially; we used GDP per capita growth annual data for each country (Kenya, Tanzania and Uganda respectively) for 64 years (1950-2013). The data was cut for each country in four pieces one before the 1967 one between 1967 and 1977 and one on the year of integration of 2000 and after. Then we selected their spectral density plots in order to find periodicity eliminating the background noise from a periodogram. The results show that the effects of integration exist in all countries for both cases with the exception of Tanzania for the latter integration. On the breakup case all countries seem to raise their cycle periodicity.

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