The effect of non-tariff barriers on economic performance of COMESA countries

Abstract

The main purpose of this research was to establish the effect of the effect of non-tariff barriers on economic performance of comesa countries. The study used qualitative research design. The sample size of the study constituted nine Comesa countries. Data for the study was obtained from the IMF Annual country reports for countries involved in the study. The results from the regression analysis indicated that only 62.14 percent of variations on economic performance of the countries could be attributed to determinants such as import licenses, trade quotas, and production subsidies and the remaining portion being influenced by other factors. This study further revealed that the determinants such as such as import licenses, trade quotas, and production subsidies were directly related to the economic performance among Comesa countries as was measured. This implies that effective management of determinants such as import licenses, trade quotas, and production subsidies can be implemented to improve levels of economic development. Multiple correlation analysis was performed with each of the unique models to examine the significance of relationship amongst the various independent variables and the dependent variable. All the variables were incorporated in one model, multiple correlations co-efficient was observed. The raw data obtained from the IMF country reports under study were analyzed using Ms Excel spreadsheets after which regression analysis was performed. Ordinary Least Square (OLS) regression found that import licenses had a positive relationship with the economic performance of the various Comesa countries. The findings from the study confirmed that trade quotas and productions subsidies had varying degrees of relationship with the economic performance of the Comesa countries. The study revealed that import licenses positively influenced economic performance, trade quotas was positively correlated with the economic performance and Production subsidies negatively influenced the economic performance of the Comesa countries. This study therefore recommended that the Comesa countries should handle their import licenses and trade quotas appropriately as the changes in import licenses and trade quotas affect the economic performance of the Comesa countries.