Non-Tariff Barriers on Intra-Common Market for Eastern and Southern African Trade
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Date
2023-11
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ATCR
Abstract
This study, aimed to shed light on the magnitude of the effects of non-tariff barriers on IntraCommon Markets for Eastern and Southern African trade, the impact of gross domestic
product, population, distance, tariff rate and common language on intra Common Market for
Eastern and Southern Africa trade, and determinants of non-tariff barriers in the Common
Market for Eastern and Southern Africa region. The study used the gravity model and simple
ordinary least squares regression model as its overarching analytical framework. Bilateral
imports between trading partners were used as the dependent variable, while the distance
between trading partners, common language, population, gross domestic product, tariff rates,
and non-tariff barriers were used as independent variables to achieve the project's objectives
one and two. The third goal of the study was to examine the unemployment rate, gross domestic
product, tariff rates, political institutions, and Common Market for Eastern and Southern Africa
members as they relate to achieving objective three. The study confirmed that the imposition
of non-tariff barriers has a negative effect on bilateral trade. An increase of one percent in nontariff barriers is associated with a 34.3 percent decrease in the Intra-Common Market for
Eastern and Southern Africa bilateral imports, an increase of one percent in gross domestic
product is associated with a 30.8 percent increase on the intra-Common Market for Eastern and
Southern Africa bilateral imports, and one percent increase in tariff rate is associated with 38.8
percent decrease in bilateral imports. Therefore the study recommends that the Common
Market for Eastern and Southern Africa should encourage trade facilitation measures, promote
economic growth, encourage bilateral trade negotiations, strengthen political institutions,
promote good governance and accountability, and implement public sector reforms among
other recommendations.
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Citation
Sewe, C. O., & Kimunio, I. (2023). Non-Tariff Barriers on Intra-Common Market for Eastern and Southern African Trade. African Tax and Customs Review, 7(1), 16-16.