Abstract
This study determines transmission channels of Foreign Direct Investment (FDI) and Trade Openness (TO) in improving the export competitiveness among the East African community member countries. Different from other studies, this study used both inflow of FDI and accumulated FDI (stock). The study finally applied Fixed Effect Model (FEM) cover the period from 2010 to 2019. On one front, the results revealed that FDI and trade openness are complemented with technological development and economic freedom. However, the results of the economic freedom and technological advances failed to enhance FDI stock effect to export competitiveness. Policy reforms to improve economic freedom, technological development, and human capital, strengthening the inter-relationship of the domestic sector with FDI and trade openness are required to improve export competitiveness among the EAC member states.
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