The American Growth Opportunity Act Impact on U.S. Trade with Kenya

Abstract

The American Growth Opportunity Act legislations provide duty-free access of selected African products into the US market. Kenya became eligible for participation in the year 2000. This study analyzes trade creation in Kenya after the legislation's implementation. The available literature shows that trade increases after the implementation of free trade agreements. The data included historical trade data, historical exchange rate data and US tariffs data. The study used a regression model and the results showed that positive trade was created after the implementation of the legislations.

Keywords: Kenya, AGOA, trade creation

JEL Classification: F13, F14