EFFECTS OF BALANCE OF PAYMENT ON ECONOMIC GROWTH OF EAST AFRICAN REGION COUNTRIES

This research study examined the effect of international trade balance on economic growth East African region in view imbalances region. In order to achieve objectives, a methodology framework panel regression analysis was undertaken. For purposes employed descriptive design. The focused and relied secondary data obtained from World Bank website, ADI WDI website. A checklist developed based questions used collect values variables corresponding period under study. time series ranged 1995 -2020. organized through excel later imported E-views 12 software for analysis. Regression, statistics analytic statistical methods analytical process results presented tables, graphs figures clarity ease understanding. findings revealed long-run relationship among all variables. Moreover, consideration were found have long run significant impacts Time properties tested such as presence unit roots co-integration ensure that spurious would not result. part log GDP which stationary at level other non-stationary but became first difference hence integrated one. led this conclude contribution countries is mainly function merchandise, service financial transactions. outward-oriented strategy much larger impact growth, should modify composition by switching exports raw materials semi-manufactured goods high valued-added goods. Furthermore, policy promote investments capital intensive sectors develop human can absorb technologies coming advanced countries. Finally, there need sustained development digitization adoption new innovations risk detection mechanisms insulate respective economies external shock. Key Words: Trade Balance, Visible Invisible International Financial Transactions, Economic Growth CITATION: Muasya, S., & Muturi, W. (2023). Effects payment east african Strategic Journal Business Change Management, 10 (2), 289 –306.