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Common External Tariff and Household Welfare in Nigeria

Author

Listed:
  • Ozoh, Joan Nwamaka

    (Department of Economics, Nnamdi Azikiwe University, Awka, Anambra State, Nigeria.)

  • Amaka, G. Metu

    (Research Fellow Centre for Economic Policy and Development Research Covenant University Ota)

  • Madueke, Chinwe, Monica

    (N\A)

  • Monica and Chika Maureen, Okaforocha

    (N\A)

Abstract

Economic integration into the global markets offers the opportunity for rapid growth and poverty reduction, particularly in developing countries. It is believed that lowering trade barriers on imported goods provides the consumers with welfare gains, access to better-quality products and lower prices. Therefore, this paper investigated the impact of common external tariff on household welfare in Nigeria within the period of 2005 to 2021. This study is a quantitative research and the data were sourced from World Bank Integrated Trade Solution database, World Bank Commodity Price data and National Bureau of Statistic. The data collected were analyzed using Auto Regressive Distributive Lag (ARDL). The results of the study show that common external tariff are significant and positively impacted on household welfare while tariff changes has significant but negative impact on household welfare. The study, therefore, strongly recommends that all closed borders should be opened in order to discourage smuggling and illegal routes of importing goods while advocating the adoption of Africa’s free trade agreement for better opportunities for export of domestic manufactures.

Suggested Citation

  • Ozoh, Joan Nwamaka & Amaka, G. Metu & Madueke, Chinwe, Monica & Monica and Chika Maureen, Okaforocha, 2023. "Common External Tariff and Household Welfare in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(5), pages 108-119, May.
    • Handle: RePEc:bcp:journl:v:7:y:2023:i:5:p:108-119
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    References listed on IDEAS

    as
    1. Bahta, Yonas Tesfamariam & Groenewald, Johannes Andries, 2015. "The Potential Impact Of A Southern African Common External Tariffs Regime On The Economy Of Lesotho," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 3(2), pages 1-15, April.
    2. Porto, Guido G., 2006. "Using survey data to assess the distributional effects of trade policy," Journal of International Economics, Elsevier, vol. 70(1), pages 140-160, September.
    3. Michael E. Johnson & Paul Dorosh, 2017. "Tariffs, Smuggling and Economic Welfare: A Spatial Analysis of Nigerian Rice Policy Options," Journal of African Economies, Centre for the Study of African Economies, vol. 26(4), pages 516-538.
    4. Nicita, Alessandro, 2009. "The price effect of tariff liberalization: Measuring the impact on household welfare," Journal of Development Economics, Elsevier, vol. 89(1), pages 19-27, May.
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