The Impact of the rule of law on economic growth of the East Africa Community countries: An Empirical Analysis

Abstract: Economic integration and cooperation were of the major objectives for establishing the East African Community in 1967. Initially, it consisted of Kenya, Uganda, and Tanzania, and later expanded to include five more countries, namely Rwanda, Burundi, the Democratic Republic of Congo, South Sudan, and Somalia. The intergovernmental organization acknowledges that the rule of law is an indispensable basis for reaching its economic objectives. Despite the region experiencing steady economic growth, it falls far behind its potential. On average, the region scores poorly on the rule of law index, one of the factors acknowledged by many economists to influence economic performance. The research investigates the extent to which the rule of law affects the economic growth of the East African Community countries. The data sample used spans twenty years from 2003 to 2022. The data for the two variables was sourced from the World Development Indicators (World Bank) database to examine the relationship, and Ordinary Least Squares regression was conducted to analyse the impact of the rule of law on economic growth across the EAC countries. The results revealed that the rule of law has a weak positive impact on the economic growth of the EAC countries. This shows that increased adherence to the rule of law can lead to increased economic growth. The study recommends that governments strengthen institutions to guarantee higher and steadier economic growth. The study also recommends consistency in the implementation of intra-trade policies and the guarantee of property and contractual rights. Keywords: Economic growth, Rule of Law, ordinary least square, EAC. Title: The Impact of the rule of law on economic growth of the East Africa Community countries: An Empirical Analysis Author: DR. MUSICHA SHARIFF International Journal of Recent Research in Social Sciences and Humanities (IJRRSSH) ISSN 2349-7831 Vol. 12, Issue 3, July 2025 - September 2025 Page No: 30-38 Paper Publications Website: www.paperpublications.org Published Date: 04-August-2025 DOI: https://doi.org/10.5281/zenodo.16736695 Paper Download Link (Source) https://www.paperpublications.org/upload/book/The%20Impact%20of%20the%20rule%20of%20law-04082025-2.pdf