The paper investigates the relative importance of trade policy and 'natural' sources of export taxation in Malawi, a landlocked African economy. These sources of export taxation are in turn used to explore how export supply would respond to trade liberalisation as opposed to measures which lower other international trade costs. The findings indicate that trade policy barriers are now only a limited source of 'true' export taxation and that trade policy reform needs to be complemented with reforms to reduce international trade, including transport, costs.
Following an introduction the sections of the paper are as follows: Trade Barriers and Regime Changes in Malawi, Modelling Framework: Export Supply and 'True' Export Taxation, Measurement of True Export Taxation, Estimation of the Augmented Export Supply Function for Malawi, Export Supply Response to Lowering Trade Costs, and finally conclusions.
Export Response to Trade Liberalisation in the Presence of High Trade Costs: Evidence for a Landlocked African Economy, Centre for Research in Economic Development and International Trade, University of Nottingham, UK, vi + 29 pp.