Title: Is there an optimal tariff for African countries?

Authors: Chukwuma Agu

Addresses: African Institute for Applied Economics, 128 Park Avenue, GRA, P.O. Box 2147, Enugu, Nigeria

Abstract: Economic theory suggests optimal tariff of zero for a small open economy, but revenue and political considerations make this impossible. Recommendations of |the ideal| rates range from between zero and 40% for Sachs and Warner index to between zero and 25 for the UEMOA/ECOWAS, etc. So what determines |optimal| tariff rates for African countries looking for trade policy anchors in a globalising world? This work evaluates considerations for determining tariff level consistent with growth aspirations of African countries. It recommends a country by country approach to tariff prescription giving consideration to the level of economic development and structure of production.

Keywords: optimal tariffs; open economies; Africa; Jeffrey Sachs; Andrew Warner; economic theories; zero tariffs; revenue considerations; political considerations; politics; West African Economic and Monetary Union; UEMOA; Economic Community of West African States; ECOWAS; trade policies; tariff levels; growth aspirations; globalisation; tariff prescriptions; economic development; production structures; openness indexes; private law.

DOI: 10.1504/IJPL.2011.041067

International Journal of Private Law, 2011 Vol.4 No.3, pp.376 - 390

Published online: 28 Mar 2015 *

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