Trade Policy and Transport Costs in Kenya

Jane Kiringai

Discussion Papers from University of Nottingham, CREDIT

Abstract: Recent studies on trade policy for low-income countries have established that high transport costs associated with poor quality infrastructure in countries such as Kenya represent a barrier to trade and an additional source of protection to domestic producers of import competing goods. This study reports results for Kenya on protection rates from tariffs and transport costs. Although Kenya reduced tariffs during the 1990s, protection increased for agriculture, manufactured foods, wood products and clothing. Two sectors experienced declines in protection (raw textiles, fishing and forestry) and chemicals moved from positive to negative protection. Effective protection due to transport costs was equivalent to 50% in the early 1990s but fell to 20% by 2003. As the new EAC Customs Union implies a reduction in tariffs, overall the level of protection will fall on average to below ten per cent.

Keywords: Effective Protection; Transport Costs; Trade; Kenya (search for similar items in EconPapers)
Date: 2006-11
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Persistent link: https://EconPapers.repec.org/RePEc:not:notcre:06/11

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