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GTAP Resources: Resource Display

GTAP Resource #3847

"Non – Tariff Barriers and Exports: An Impact Analysis from Africa – EU and Africa – USA Trade Relations"
by Kareem, Olayinka Idowu


Abstract
There have been divergent opinions as to what undermine Africa’s export flows to the developed nations particularly the European Union (EU) and United State of America (USA). While tariff barriers had been said to be a major hindrance to Africa’s exports according to African governments, studies have found that tariffs which are part of instruments of trade restrictions (ITRs) were not the only problems to Africa’s export flows. However, most of these studies examined only the tax (price) – related trade restrictions without considering the non – tariff barriers. Besides, conclusions of these studies were based on data that were limited to sub – Saharan Africa (SSA). These gaps were filled by this study by providing an econometrics analysis of trade restriction issues and also determine the most significant trade restriction instruments that inhibit Africa’s export to these markets. Thus, this study evaluates the impact of non – tariff barriers in the EU and USA on Africa’s exports with the view of examining the extent to which its determined market access.

The study covered 25 African countries that trade with the EU and USA on exports that spread across agricultural, industrial and petroleum sectors. The gravity model was employed to analyse the data covering the period from 1990 to 2009, which were obtained from WTO, UNCTAD, WITS, etc. To mitigate potential endogeneity and heteroscedasticity problems the generalized method of moments (GMM) technique was introduced in the analysis.

This study revalidated results of previous studies that tariffs were not the cause of Africa’s export inability to have access to the EU and USA. Beyond this, the results showed that the incidences of the use of non-tariff barriers mostly inhibited Africa’s export flows to the EU and USA, such that non-tariff barriers were significant in both markets.


Resource Details (Export Citation) GTAP Keywords
Category: 2012 Conference Paper
Status: Published
By/In: Presented at the 15th Annual Conference on Global Economic Analysis, Geneva, Switzerland
Date: 2012
Version:
Created: Kareem, O. (4/27/2012)
Updated: Kareem, O. (4/9/2014)
Visits: 42,707
- Preferential trading arrangements
- Domestic policy analysis
- Africa (North)
- Africa (Central)
- Africa (East)
- Africa (West)
- Africa (Southern)
- European Union
- North America


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