ECONOMIC COMPLEXITY AND BILATERAL TRADE FLOWS IN SELECTED COMESA AND EAST ASIA COUNTRIES

A particular country’s productive knowledge and sophistication become a crucial determinant for the exported products in increasingly integrated global trade. However, studies that emphasize connection between economic complexity trade flows are still sparse. This research aims to examine role of on bilateral 27 countries COMESA East Asia using gravity model from 1995 till 2019. Based countries’ geographical regions income levels, empirical estimation study applied Poisson pseudo maximum likelihood (PPML) estimator. The main results robust various specifications consistent with expectations indicators. found strong evidence expansion diversification enlarges different goods. Explicitly, increases exports machinery transport equipment alongside manufactured products, while its effects agricultural negligible. Thus, this proposes should engage more sophisticated Research Development (R&D), attract multinational companies, establish industrial policies, improve their productivity by utilizing existing production network. They move diversified structure enhance flows.