Non-Tariff Barriers on Intra-Common Market for Eastern and Southern African Trade
Abstract
This study, aimed to shed light on the magnitude of the effects of non-tariff barriers on Intra-Common 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 non-tariff 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.