The impact of tariff and non tariff barriers on Tanzanian export performance

To what extent tariff and non tariff barriers impact export performance is a main trust of this study. The study specifically attempts to assess the impact of tariff barriers on export performance and non tariff barriers on export performance from firm’s perspective of these barriers as opposed to many studies that used macro economics variables to explain the impact of these barriers on export performance. The findings in this study, represents an attempt to contribute to the solution of tariff and non tariff barriers to boost Tanzania export sector and to add into the body of knowledge on demand side theory. Using Structural Equation Model (SEM), in a sample of 151 exporting firms in Tanzania, a regression analysis is run for both tariff and non tariff data obtained from exporting firm’s and the result is as anticipated to depict a positive and significant impact on export performance. The main findings of the study is that, the impact of tariff barriers on export performance found to be positive and significantly low indicating that, bound tariff have fallen considerably following Doha round WTO negotiation but the applied tariff is still high for Tanzania’s export destinations. Labelling and packaging though found to be significant, contrary to the prediction of the model has a negative sign which indicates that, firms avert the labelling and packaging costs by exporting unprocessed produce. The non tariff barriers were found to be very significant and thus, it is essential to address the demand side constraints in an integrated manner if Tanzania is to perform well and exploit the preferential access to developed markets under a variety of schemes in their disposal.