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Trade Policy and Transport Costs in Kenya


  • Jane Kiringai


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.

Suggested Citation

  • Jane Kiringai, 2006. "Trade Policy and Transport Costs in Kenya," Discussion Papers 06/11, University of Nottingham, CREDIT.
  • Handle: RePEc:not:notcre:06/11

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    References listed on IDEAS

    1. Amjadi, Azita & Yeats, Alexander J., 1995. "Have transport costs contributed to the relative decline of sub-Saharan African exports? Some preliminary empirical evidence," Policy Research Working Paper Series 1559, The World Bank.
    2. Pritchett, Lant & Sethi, Geeta, 1994. "Tariff Rates, Tariff Revenue, and Tariff Reform: Some New Facts," The World Bank Economic Review, World Bank, vol. 8(1), pages 1-16, January.
    3. Balassa, Bela, 1988. "Incentive policies and agricultural performance in sub-Saharan Africa," Policy Research Working Paper Series 77, The World Bank.
    4. W. M. Corden, 1966. "The Structure of a Tariff System and the Effective Protective Rate," Journal of Political Economy, University of Chicago Press, vol. 74(3), pages 221-221.
    5. repec:fth:oxesaf:94.10 is not listed on IDEAS
    6. Ritva Reinikka, 1994. "How to identify trade liberalization episodes: an empirical study on Kenya," CSAE Working Paper Series 1994-10, Centre for the Study of African Economies, University of Oxford.
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