Recent studies on trade policy for low-income countries such as Tanzania
have established that high transport costs associated with poor (and
often inadequate) infrastructure characteristic in such countries add to
transaction costs, which is a barrier to trade and an additional source
of protection to domestic producers of import competing goods. This
paper reports the results on Tanzania of a study to assess the
protective impact of transport costs on trade. The estimates are used to
identify sectors most vulnerable to transport costs, and determine the
extent in which Transport costs contribute to protection.
The report comprises an introduction, and then sections on: review of
trade policy and performance for Tanzania, the transport sector in
Tanzania, framework and data for analysing level of protection,
estimates of protection due to tariff and transport cost, and conclusion
and policy implications.
Transport Cost and Trade Policy in Tanzania, Economic and Social Research Foundation (ESRF), Dar es Salaam, Tanzania, v + 46 pp.