Trade Policy and “Natural” Barrier-Induced Incidence of Protection and Aggregate Demand for Imports: Evidence from Malawi
African Journal of Economic Policy
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Title |
Trade Policy and “Natural” Barrier-Induced Incidence of Protection and Aggregate Demand for Imports: Evidence from Malawi
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Creator |
Zgovu, EK
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Subject |
Trade policy
Trade barriers Transport costs Demand for imports Incidence of protection |
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Description |
This study investigated the relative importance of trade policy and “natural” barrier-induced incidence of protection and its effects on trade for a landlocked Sub-Saharan African economy. The results showed that policy-induced protection has diminished with trade reforms whilst non-policy-induced protection remained high mainly because of high transport costs. An import demand system estimated using Johansen cointegration technique showed that natural barriers-induced incidence of protection has had strong disincentive effects on importing. Thus, Malawi needed to diversify and increase investment in strategic transport infrastructure to reduce “natural” barrier-induced trade costs for improved trade competitiveness.Key words: Trade policy; Trade barriers; Transport costs; Demand for imports; Incidence of protection
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Publisher |
Department of Economics, University of Ibadan
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Date |
2014-01-21
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Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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Format |
application/pdf
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Identifier |
https://www.ajol.info/index.php/ajep/article/view/99951
10.4314/ajep.v17i1. |
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Source |
African Journal of Economic Policy; Vol. 17 No. 1 (2010); 27-61
1116-4875 |
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Language |
eng
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Relation |
https://www.ajol.info/index.php/ajep/article/view/99951/89212
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