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GTAP Resource #7879

"An assessment of the effect of the common external tariff on imports for export."
Authors: Hove, Privilage


Abstract

As production and trade become increasingly integrated within global value chains, identifying who ultimately bears the cost of protectionist policies has become more complex. The fragmentation of production requires analytical frameworks incorporating cross-border input-output linkages to evaluate how trade costs affect competitiveness at national and sectoral levels. This study assesses trade protection within the proposed Southern African Development Community customs union using value-added measures of trade. It applies the Foreign Value-Added Trade Restrictiveness Index and the Mercantilist Trade Restrictiveness Index (MTRI) within a general equilibrium framework to capture the effects of tariff structures on firms that rely on imported intermediate inputs. Protection indexes are computed at the bilateral level on both gross imports and imports for exports using the GTAP Value Added module, calibrated to the GTAP Multi Regional Input Output database. The analysis covers Botswana, Malawi, South Africa, Tanzania, and Zimbabwe. Results reveal heterogeneity across countries and sectors. Without the customs union, Tanzania records the highest MTRI at 20.9 percent, while Malawi registers the lowest at 0.8 percent. The Common External Tariff reshapes trade patterns and influences backward participation in global value chains. Sectoral evidence indicates that agri-food industries are more vulnerable to protectionist measures, whereas manufacturing sectors demonstrate greater resilience. These findings provide policy-relevant insights for SADC, emphasizing coordinated tariff reforms to support industrial development, regional integration, and equitable trade expansion.


Resource Details () GTAP Keywords
Category: 2026 Conference Paper
Status: Published
By/In: Presented during the 29th Annual Conference on Global Economic Analysis (Kyoto, Japan)
Date: 2026
Version: 1
Created: Hove, P. (4/15/2026)
Updated: Hove, P. (4/15/2026)
Visits: 48
- Economic development
- Preferential trading arrangements
- Model integration and coupling
- Model validation and sensitivity analysis
- Africa (Southern)


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