\/WPS 2O38
POLICY RESEARCH WORKING PAPER   203 8
Good Governance                                                    Turning the economies of
Sub-Saharan Africa around
and Trade Policy                                                  requires badly needed
national policy reform -
abandoning the region's
Are They  the  Keys to  Africa's                                   restrictive fiscal, monetary,
Global Integration  and  Growth?                                   property, and wage policies
and trade barriers.
Francis Ng
Alexander Yeats
The World Bank
ltvelopment Research Group
lrade  1
January 1999



POLICY RESEARCH WORKING PAPER 2038
Summary findings
Economists often argue that the level and structure of a   variance in some measures of economic performance,
country's trade barriers and the quality of its governance    implying that a country's own national policies shape its
policies (for example, regulating foreign investment or    rate of development, industrialization, and growth.
limiting commercial activity with red tape) have a major     Their tests provide new insights into the phenomenon
influence on its economic growth and performance.          of economic "convergence," showing that poorer open
One problem testing those relations empirically was     countries are integrating more rapidly into the global
the unavailability of objective cross-country indices of   economy than others. This finding parallels what others
the quality of governance and statistics on developing     have observed about economic growth rates.
countries' trade barriers.                                   They test their empirical results in a case study asking
Ng and Yeats use new sources of empirical information    whether inappropriate national policies have caused Sub-
to test the influence of trade and governance policies on  Saharan Africa's dismal economic performance. The
economic performance. They use a model similar to          evidence strongly supports this proposition.
those used in the literature on causes and implications of   Indices of the quality of national governance show that
economic growth but focus more heavily on the World        African countries have generally adopted the most
Bank's index of the speed with which countries are         inappropriate (restrictive) fiscal, monetary, property, and
integrating into the world economy.                        wage policies and that their own trade barriers (including
Their results show that countries that adopted less      customs procedures constraining commercial activity) are
restrictive governance and trade policies achieved         among the world's highest.
significantly higher levels of per capita GDP; experienced   Improving African trade and governance policies to
higher growth rates for exports, imports, and GDP; and     levels currently prevailing in such (non-exceptional)
were more successful integrating with the world            countries as Jordan, Panama, and Sri Lanka would be
economy.                                                   consistent with a sevenfold increase in per capita GDP
Regression results indicate that national trade and      (to about $3,500) and an annual increase of 3 or 4
governance regulations explain over 60 percent of the      percentage points in the growth rate for this variable.
This paper - a product of Trade, Development Research Group - is part of a larger effort in the group to accelerate the
trade and growth of developing countries. Copies of the paper are available free from the World Bank, 1818 H Street NW,
Washington, DC 20433. Please contact Lili Tabada, room MC3-333, telephone 202-473-6896, fax 202-522-1159,
Internet addressltabada@worldbank.org. The authors maybe contacted atfng@worldbank.org or ayeats@worldbank.org.
January 1999. (70 pages)
The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about
development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The
papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this
paper are entirely those of the authors. They do not necessarily represent the view of the World Bank, its Executive Directors, or the
countries they represent.
Produced by the Policy Research Dissemination Center



GOOD GOVERNANCE AND TRADE POLICY
Are They the Keys to Africa's Global Integration and Growth?
Francis Ng and Alexander Yeats
Staff Members, Trade Research Team
Development Research Group
The World Bank, Washington D.C. 20433



Summary
Economists generally argue that the level and structure of a country's own trade barriers,
as well as the "quality" of its governance policies, such as regulations on foreign investment or
bureaucratic "red tape" on commercial activity, will have a major influence on its economic
growth and performance. However, a problem previously encountered in attempts to test these
relations empirically was that no objective cross-country indices of the quality of governance
were available, nor were general statistics on developing countries' trade barriers. Several new
sources of empirical information help fill these information gaps and can be used to test the
influence of trade and governance policies on economic performance. This study conducts these
tests utilizing a model similar to those employed in the literature on the causes and implications
of economic growth. However, our analysis differs somewhat in that we focus more heavily on
an alternative measure of economic performance - the World Bank's index of the speed with
which countries are integrating into the global economy.
Our results show countries which adopted less commercially restrictive governance and
trade policies generally achieved significantly higher levels of GDP per capita, they experienced
higher growth rates for exports, imports and GDP, and were more successful in integrating into
the global economy. Regression results indicate national trade and governance regulations
explain over 60 percent of the variance in some measures of economic performance - which
implies that a country's own national policies are a major determinant of its rate of development,
industrialization and growth. Our tests also provide new insights concerning the phenomenon
of economic "convergence" in that they show poorer open countries are integrating more rapidly
into the global economy than others. This finding parallels what others have observed in
economic growth rates.
This study tests its empirical results in a "case study" involving Sub-Saharan Africa, and
asks whether inappropriate national policies caused the region's dismal economic performance?
The evidence strongly supports this proposition. Indices of the quality of national governance
show African countries have generally adopted the most inappropriate (restrictive) fiscal,
monetary, property and wage policies, and their own trade barriers (including customs
procedures that are a major constraint to commercial activity) are among the highest of any other
regional group.
Regression tests indicate that an "improvement" of African trade and governance policies
to levels that currently prevail in such (non-exceptional) countries like Panama, Jordan, or Sri
Lanka would be consistent with a seven-fold increase in GDP per capita (to about $3,500) and
an annual increase of about 3 to 4 percentage points in the growth rate for this variable. Since
African exports generally face zero or very low tariffs, and relatively few nontariff barriers in
major OECD markets, the implications of these findings are that the region's most pressing
economic and trade problems will primarily have to be resolved by Africa itself through the
implementation of badly needed government policy reforms. In the 1997 World Development
Report the World Bank provided a graphic description of the magnitude of these problems:



(ii)
"Achieving a turnaround in the effectiveness of the state [in Sub-Saharan Africa] will
not be easy since the roots of state failure are many and complex. Chief among them has
been a continuing struggle between traditional forms of governance and social organization
(often based on tribes, lineages, and language and kinship groups) and modern forms of
government. High military expenditure and dysfunctional behavior of military personnel
(in the absence of other checks and balances) have been important impediments. These have
often reduced the transparency and accountability of public institutions to the extent that
govermnents have felt a decreasing need to explain and justify their actions to the domestic
population."
Implementing the needed improvements in governance will require major commitments,
resolve and dedication that many African leaders typically have not exhibited in the past.
However, for past and present problems to be effectively addressed such changes are clearly of
fundamental importance.



GOOD GOVERNANCE AND TRADE POLICY
Are They the Keys to Africa's Global Integration and Growth?
Francis Ng and Alexander Yeats*
I. INTRODUCTION
The role and contribution of international trade to the process of industrialization and
growth has long been a topic of interest to economists, and a large number of studies examined
this relationship empirically. Most of these investigations confirmed Kravis (1970) conclusion
that international trade provides an important stimulus to growth.' As a result, attention shifted
to the identification of factors that constrained a country's capacity to fully engage in
international trade and experience its beneficial economic effects.2 While high foreign tariffs
'The authors are with the Trade Research Team in the Development Research Group, the World Bank,
Washington D.C. The views expressed in this paper need not reflect those of the World Bank, its member
governments, or its staff. We would like to thank Alan Winters and Lant Pritchett for numerous comments and
suggestions.
'Kravis' often cited work concluded that trade was an "engine of growth" in the 19th century. Although he still
found a strong positive relation between the two he concluded it was a "handmaiden of growth" in the 20th century.
See Singer (1950), Myrdal (1957), Harberler (1959), Prebish (1959), or Chenery (1961) among others for
illustrative examples of the general theoretical and conceptual debate on the relationship between trade and growth.
Representative studies which attempted to test this relationship empirically include Maizels (1968), Michaely (1977),
Balassa (1978), Bhagwati (1978), Reidel (1984), Singer and Grey (1988) or Ng and Yeats (1997) among others.
2Keesing (1967) provides a useful discussion of the reason why trade has these positive industrialization and
development effects. Trade brings individuals in developing countries into contact with new technologies, products
and skills and these learning effects produce an outward shift of the production-possibility frontier. International
trade also offers a means whereby some countries can circumvent the natural limitations of their own small domestic
markets. Production for export can increase employment opportunities directly and may also have similar effects
in industries with forward or backward linkages to the export sector. Increased competition from foreign firms can
also weaken the monopoly position of some domestic enterprises and result in lower prices and better service for
consumers. Trade can also produce important long-term benefits if foreign competition forces local producers to
modernize and keep abreast of recent developments and technologies.



2
and nontariff restrictions can reduce trade below potential levels, it was recognized that
domestically imposed restrictions can have similar adverse effects in less evident ways.
Specifically, a growing number of empirical investigations showed a country's own trade policies
may create a significant bias against exportables, cause a mis-allocation of resources among
industries producing for the domestic market, and also reduce a country's capacity to respond
to unfavorable external shocks.3 These twin conclusions; (i) that trade has an important positive
impact on industrialization and growth; and (ii) high domestic trade barriers reduce a country's
capacity to benefit from potential learning experiences, keep abreast with modern technologies,
realize higher foreign exchange earnings, or benefit from more vigorous competition are at the
core of policy prescriptions that seek a liberalization of a country's own trade restrictions to
improve overall economic performance.
The physical characteristics of a country, and its own governnental policies that influence
the general business "environment," can also have a major impact on a nation's ability to achieve
its economic potential. Domestic tax and profit retention policies, those relating to the provision
of social services, measures bearing on political stability or the ease with which businesses are
established and operate, policies relating to the quality and availability of transport, financial,
communications or educational services certainly will have a key influence on a country's ability
3Balassa and Associates (1971), UN Economic Commission for Asia and the Far East (1972), and Grubel and
Johnson (1971) show how the level and structure of a country's own trade barriers may incorporate an important
anti-export bias. Balassa (1982)(1983) determined that countries which pursued "outward oriented" trade policies,
characterized by low import barriers were better able to respond to adverse external shocks than those with high
tariffs and restrictive NTBs. The negative growth and industrialization record of countries that adopted "import
substitution" development strategies provides further evidence as to the superiority of open trade policies.



3
to attract investment needed to foster industrialization and integration into the global economy.'
In short, four general factors can influence a country's trade and growth: (i) the level and
structure of trade restrictions encountered in major export markets; (ii) domestic trade policies
implemented by the country itself; (iii) local government policies affecting the general business
climate and the ability of local entrepreneurs to exploit opportunities in foreign and domestic
markets; and (iv) physical characteristics of a country like its size, resource endowments,
location, and climate. Much of the recent literature on the causes and implications of economic
growth (as reflected in studies by Sachs and Warner (1995)(1998) or Barro and Sala-i-Martin
(1991)(1992)) attempt to identify factors promoting economic performance and empirically assess
their relative importance.
Although considerable evidence has accumulated concerning the sources and implications
of economic growth (such as the presumed tendency of open economies to "converge" at similar
levels of income), some potentially useful cross-country analyses were constrained by the fact
that many policy variables relating to governance had not been systematically quantified. Even
information on most developing countries' tariffs and nontariff barriers were not available in a
common format, or for common points in time (this was not the case for OECD countries' trade
barriers), and this greatly limited possibilities for empirical analyses of the relationship between
4The importance of good governance as a catalyst to industrialization and growth in developing countries is put
graphically by the World Banlc (1997): "The clamor for greater government effectiveness has reached crisis
proportions in many developing countries where the state has failed to deliver even such fundamental public goods
as property rights, roads, and basic health and education. There a vicious circle has taken hold: people and business
respond to deteriorating public services by avoiding taxation, which leads to further deterioration in services. In
the former Soviet Union and Central and Eastern Europe it was the state's long-term failure to deliver on its
promises that led, finally, to its overthrow. But the collapse of central planning has created problems of its own.
In the resulting vacuum, citizens are sometimes deprived of basic public goods such as law and order. At the limit,
as in Afghanistan, Liberia, and Somalia, the state has sometimes crumbled entirely, leaving individuals and
international agencies trying desperately to pick up the pieces.



4
foreign and domestic trade barriers, the quality of governance, and growth.5   However, trade
barriers in developing countries, as well as empirical measures of the quality of governance,
have recently improved dramatically and the possibilities for cross-country analyses of their
effects considerably increased.
This study's objective is to employ these new data sources in an examination of the
relationship between the level of both foreign and domestic trade barriers, and factors pertaining
to quality of governance and the business environment on economic performance. The paper
proceeds as follows. First, the sources and properties of the new empirical information are
discussed and these statistics are then used to construct a database on trade and governance
policies in 80 developing countries. This section of the report also discusses the use of several
economic "performance" variables that can provide a measure of a country's industrialization
and growth. Next, correlation tests are employed to determine the extent to which the trade,
governmental policies, and economic performance variables are related and how strong is the
association. Third, a multiple regression model, which is patterned on previous analyses by
Sachs and Warner (1995)(1988), is then employed to assess the combined influence of the trade
and governance policies on economic performance. We do, however, take a somewhat different
orientation than most previous "growth" studies in that we focus more heavily on the speed with
'To provide the required information for multilateral trade negotiations such as the Uruguay Round, international
agencies (primarily UNCTAD and the GATT) devoted considerable time and resources to the compilation of
statistics on trade restrictions in OECD markets. This information played a key role in insuring the success of the
multilateral trade negotiations (MTNs) since it provided negotiators with the required information on the restrictions
they were attempting to reduce.  However, since most developing countries did not actively participate in past
negotiations there was much less of an incentive to compile information on their trade barriers. In previous MTNs
developing countries generally clung to the principle of nonreciprocity arguing that, due to the nature of their
internal development problems, it was not feasible to offer reciprocal tariff reductions in return for those of
developed countries. Since the developing countries were in fact trying to negotiate tariff cuts in their export
markets, without offering concessions in return, their bargaining power was, at best, very weak.



5
which individual countries are integrating into the global economy as a primary measure of
economic performance. Fourth, the study then applies the empirical findings in a "case study"
involving Sub-Saharan Africa to determine the extent to which inappropriate domestic policies
contributed to the region's generally dismal economic performance. The study closes with an
overall assessment of the results and their implications for the formulation of trade and growth
policies.
It. DATA SOURCES AND METHODOLOGY
This study draws on three independently compiled databases developed by national and
international organizations. Statistics on foreign and domestic trade barriers were taken from
published UNCTAD reports (and to a lesser extent those of the World Trade Organization),
while empirical indices of the quality of national governance were drawn from a recent
publication by the Heritage Foundation and the Wall Street Journal. The empirical measures of
economic performance, such as the speed of integration into the global economy, or growth in
GDP, or exports, were drawn from World Bank publications.
A. Statistics on Developing Countries' Trade Barriers
Over the past two decades the United Nations Conference on Trade and Development
(UNCTAD) took the lead in compiling statistics on developed countries' trade barriers with the
objective of producing an "inventory" of matched trade, tariff and nontariff barrier statistics
(Laird and Yeats 1990 describe the methodology used in preparing this information and potential
applications use in research and policy studies). UNCTAD (1994a)(1994b) subsequently updated



6
and extended its earlier inventory to cover about 100 developed and developing countries.
Although less extensive in its national coverage, the GATT (now World Trade
Organization) also collected and published empirical infornation on trade and trade barriers in
individual countries chosen for this organization's trade policy review (TPR) process. The
country specific TPR reports normally provide extensive tabular information on tariffs and
nontariff restrictions applied by the country under investigation (see GATT 1990, 1992 or 1995
for representative examples of the statistics generated). Unlike the UNCTAD statistics, which
are often available at the level of the tariff line, the WTO data generally are for more aggregate
product groups.
This study utilizes these statistical sources for data on trade barriers in developing
countries. In drawing on this information a specific sequence of use was employed. First, we
relied on the UNCTAD (1994a)(1994b) reports given their common statistical format for trade
barrier information across countries. The 50 developing countries included in these publications
were all selected for our analysis. Next, additional countries that were the focus of a World
Trade Organization TPR investigation, but were not included in the UNCTAD reports, were
added with some related data taken from an OECD (1996) publication. The WTO sources
provided data for an additional 20 countries. Finally, trade and trade barrier statistics for a few
additional countries were drawn from an earlier UNCTAD (1987) document. Since many
developing countries initiated major trade policy reforms in the late 1980s and 1990s, only
limited use was made of this report and countries where major reforms occurred were excluded.
Altogether, these published sources provided information on the trade regimes of 80 developing
countries. The annex and appendix tables to this study provides information as to how this



7
information was used to compute country specific information on trade and nontariff barriers,
and also gives detailed statistics on these national trade barriers and the profiles of protection
in the developing countries.
B. Statistics on Foreign Trade Barriers
Our analysis recognizes that trade barriers in major foreign export markets can also have
an important influence on developing countries' trade, industrialization and growth prospects.
If foreign tariffs and nontariff barriers facing a country's exports are high it may only have a
limited capacity to offset these external constraints - (say) through the adoption of enlightened
domestic policies that create a favorable business climate. Conversely, economic performance
in a second country, whose exports do not encounter major trade barriers, may be greatly
stimulated by the adoption of appropriate domestic trade and governance measures.  In
recognition of this point, two additional variables were tested in our analysis. The first is the
average pre-Uruguay Round tariff rate that each country faced in OECD markets. The second
was a tabulation of the share of its exports that encountered one or more forms of OECD
nontariff restrictions.' As was the case with the domestic trade interventions (see Section A
above), the UNCTAD and World Trade Organization sources were used for the compilation of
this additional information.
6While it may have been more desirable to compile this data for all export markets, there were too many
"holes" in the available information for this approach to be employed. That is, trade barrier data was not available
for some Latin American, Asian and African countries, or for the states of the former Soviet Union so a decision
was made to tabulate the statistics for OECD markets where complete data were available. It should be noted that
the OECD countries are the most important markets for most developing countries and receive approximately 60
percent of the latter's exports. See Pritchett (1996) for a useful discussion of the problem of measures of
"openness" in individual countries.



8
C. Statistics on the Ouality of Governance
Although the approach is relatively new, several recent publications attempted to
quantitatively "measure" the overall "quality" of governance in individual countries as well as
other factors that influence economic performance and the environment for growth. For
example, Transparency International recently constructed numeric indices of the extent of
corruption in 54 developed and developing countries by using detailed interviews with
government officials and local and foreign businessmen. The indices ranged, theoretically, from
a value of zero for a country perceived to be totally corrupt to a value of 10 for a country
perceived to be totally clean.
More recently, the Wall Street Journal and the Heritage Foundation (WSJ-Heritage 1997)
compiled and published indices of the overall economic policy environment in 150 individual
countries along with similar statistics (indices) on government policies relating to ten key
underlying factors, namely, the extent and severity of trade controls, the overall level of taxation
and its impact of economic incentives, the extent and severity of government interventions in the
economy, the appropriateness of national monetary policy and its contribution to inflation, the
extent to which restrictions were placed on capital flows and their impact on foreign investment,
the restrictiveness of government controls on banking, the extent of government imposed wage
and price controls, the security of property rights and the degree to which they were protected
by the government, the extent of government regulation of industry, and the size of the black



9
market.7 The WSJ-Heritage index for each of these variables, which were all assigned on the
basis of highly objective underlying criteria, could take a value ranging from one to five with
lower values indicating a policy environment more conducive to economic growth. Index values
were assigned on the basis of clearly specified empirical standards that greatly limited the
potentially corruptive influence of subjective judgements.8 In addition, an overall index of the
quality of the national economic environment was derived by averaging the ten WSJ-Heritage
policy indices.
D. Empirical Measures of Economic Integration and Performance
While WSJ-Heritage constructed indices for policy variables that should influence
industrialization and growth, a related consideration concerns the selection of empirical measures
of economic performnance? Since gross domestic product (GDP) reflects the value of all
nationally produced goods and services, both the level and rate of change in GDP (expressed on
a per capita basis) are clearly two relevant measures of performance.    Cross-country
comparisons of the value of GDP per capita can indicate whether nations that pursued
7For example, in the construction of the taxation index five gradations of income tax levels were set - ranging
from no taxes on income or a flat tax rate of 10 percent or less - a situation assigned a value of 1.0 - as opposed
to an environment where a top rate of over 50 percent was applied along with a tax on average income between 20
and 25 percent. This "worst case" environment was assigned an index of 5. Similar gradations were made for
corporate tax rates and index values assigned. The corporate and income tax indices were then average to arrive
at an overall "tax environment" index for the country. For details as to how the indices were constructed and
information on specific factors surveyed within each of the other government policy sectors see The Wall Street
Journal and Heritage Foundation (1997).
8As an illustration, a trade policy index of 1 was assigned to a country with average tariffs of 4 percent or less,
while an index of 2 was assigned to countries whose tariffs were in the 5 to 9 percent range. The worse rating (an
index of 5) was assigned to countries with average tariffs exceeding 20 percent. WSJ-Heritage also examined
various published studies (IMF, WTO, UNCTAD) to determine the extent that nontariff protection was used to
supplement that from tariffs. Where NTBs were extensively applied the (tariff derived) index was increased by one
point.



10
enlightened trade and governance policies generally achieved higher output levels. Similarly,
analysis of the rate of change in per capita GDP can show whether countries that adopted such
policies are growing at above average rates. The reader should note that here, and in the
discussion that follows, we focus on two different types of performance measures: (i) those that
relate to current levels, and those that relate to recent changes in an economic variable.
Differences in the former should reflect differences in previous "achievement" although one must
be careful about lines of causation (that is, richer countries may find it easier to implement lower
trade barriers once they pass a certain threshold). For this reason we tend to assign more
importance to tests involving the "rate of change" performance measures. Another potentially
useful measure of economic performance can be drawn from the World Bank's (1996) attempt
to derive an index of the success of individual countries in integrating their trade, financial and
other economic ties with the global economy.9 Measures of integration are of interest since this
process should be seen as an intermediate goal that will later influence performance (World Bank
1996, pp. 25-31).  The Bank's measure incorporated the rate of change in four underlying
factors, namely: (i) changes in real trade as a share of GDP, (ii) changes in the country's
institutional investor ratings, (iii) foreign direct investment (FDI) as a share of GDP, and (iv)
the share of manufactures in total exports.'° The speed of integration index is an average of
the scores for these four variables after they were standardized to have a mean of 0 and a
9The World Bank (1997, p. 2) provides a graphic statement as to the importance of good governance in enabling
assisting countries to integrate into the global economy. "The global integration of economies and the spread of
democracy have narrowed the scope for arbitrary and capricious (government) behavior. Taxes, investment rules,
and economic policies must be ever more responsive to the parameters of a globalized world economy.
Technological change has opened new opportunities for unbundling services and allowing a larger role for markets.
These changes have meant new and different roles for government - no longer as a sole provider but as a facilitator
and regulator."
'°See World Bank (1996) particularly Appendix 2 for details of this empirical analysis.



11
standard deviation of 1. The index would normally range between values of ± 3.0 with higher
positive index values identifying countries that were more successful in integrating globally.
Negative values indicate the links were deteriorating or developing at a below average rate.
Several additional performance measures, which are based on both the rate of growth and
level of trade, were also tested. For example, the rate of change in the value or volume of
exports can indicate how well a country capitalized on commercial opportunities in foreign
markets."   Were countries that adopted appropriate trade and governance policies relatively
more successful in exploiting export opportunities?  Analyses of similar measures for imports
should show the extent to which a country was able to draw upon foreign suppliers whose
products might be of superior quality to those available locally. Countries should have an
incentive to reduce barriers which constrain their nationals' ability to secure superior foreign
goods given the positive associated welfare and production effects of such access. Finally, a
trade "openness" measure (that is, the ratio of imports plus exports to GDP) also has relevance
for our empirical tests. Since more open countries have demonstrated an ability to better adjust
to adverse exogenous shocks, and are better able to capitalize of foreign trade opportunities
(Balassa 1982, 1983), increases in this measure could be interpreted as a gauge of improved
performance.
Before turning to the empirical analysis some additional points should be noted. First,
nonpolicy factors like country size or geographic location may also influence economic
"Government sponsored incentives like export subsidies can undermine the reliability of this variable as a
measure of economic performance. For example, in the 1970s and 1980s the European Economic Community paid
massive export subsidies to sugar exporters with the result that the EEC grew from a relatively minor factor in
international markets to the world's largest sugar exporter, thereby displacing many traditional suppliers in the
Caribbean. Some developing country governments have also paid export subsidies for manufactured goods and these
have occasionally been subject to OECD countervailing duties.



12
performance. Several published studies suggested smaller countries may face more forrnidable
obstacles to growth and industrialization due to constraints stemming from limited domestic
market size, or due to a more limited natural resource base (see Khalif 1974 among others). For
this reason, two measures of market size, namely, population and the value of gross domestic
product were also employed in our initial statistical analysis since these factors may influence
both the "level" and "growth" performance measures. In addition, we also recognize that global
demand and market conditions for the types of goods a nation produces can have an impact on
the trade and performance variables. The problems and benefits of trade for countries whose
exports are concentrated in energy products or primary commodities may be quite different than
those facing a country whose exports consisted largely of manufactured goods. This contention
was behind UNCTAD's efforts to establish a "Common Fund" for stabilizing commodity prices
(UNCTAD 1972, 1977). For this reason, two dummy variables were employed in the analysis.
The first took a value of unity for countries where three-quarters or more of all exports were
primary commodities, while the second identified countries where energy products consisted of
three-quarters or more of total exports."2   The rationale for identifying the latter group
separately is that they may have considerably greater access to the financial resources needed
for industrialization than most other developing countries - or tend to have overvalued exchange
rates.
Clearly there are additional factors like climate, direct access to ocean transport, distance
to major international commercial centers, or the extent of natural resource endowments that
'2Primary commodities were defined as all items falling in SITC groups 0, 1, 2, 3, 4 and 68. Energy products
included all items classified in SITC group 3. Binary variables were selected for these terms since they appear to
have exhibited a superior performance in many empirical studies of the relation between commodity concentration
of exports and export earnings instability.



13
may also influence a country's industrialization and growth. We recognize the potential
importance of these factors, but have structured our approach to focus solely on the influence
of national trade and governance policies.
III. ECONOMIC PERFORMANCE, TRADE POLICIES AND GOVERNANCE
While the preceding discussion argued that a country's economic performance was
dependent on its trade and governance policies, and the environment for growth they create, key
questions concern the strength of these relationships and whether there are significant differences
in the relative importance of types of policies (say, tax as opposed to monetary policy). If such
differences exist their identification could help establish priorities for policy change. Since the
relevant variables have all been quantified, correlation and regression tests could indicate their
individual and combined importance.
A. The Influence of Trade Policy Variables
Table 1 presents results when the eight economic performance measures were correlated
with four measures of the developing countries' own trade restrictions (average tariffs, average
tariffs plus para-tariff charges, an NTB frequency of use index, and the WSJ-Heritage trade
policy index), as well as measures of the level of foreign tariffs and nontariff barriers these
countries face. In addition, correlations between the economic performance variables and: (i)
the overall WSJ-Heritage governance index; the proxies for country size; and (iii) the dummies
reflecting the composition of exports are also shown. Several important points emerge from
these statistical tests.



14
Strong significant results occur when the WSJ-Heritage trade policy and overall
governance index are correlated with the economic performance variables. In fact, the
correlations between the trade policy index and GDP per capita (a performance measure
reflecting the level of development that has been achieved), as well as the speed of integration
index (r = - 0.457 and -0.446, respectively) which is a measure of change, are among the
strongest shown in the table and take the expected directional sign. The sole exception is the
correlation between the WSJ-Heritage trade policy index and export volume growth rate which
fails to achieve statistical significance at the 95 percent confidence level."3
* Surprisingly, countries whose exports encounter relatively high foreign tariffs also
achieved higher rates of growth for both GDP and exports (r = -0.436 and -0.477 respectively).
Higher extemal tariff and nontariff barriers are also significantly correlated with many of the
other performance variables. There appear to be at least two likely explanations. First, the line
of causation which generally occurs is that protectionism is implemented in sectors where trade
is growing at an above average pace or even surging. Second, many of the high trade and
economic growth rate countries, like Korea, Taiwan (China), or Singapore, were more than able
to overcome the relatively high external OECD trade barriers through the adoption of
appropriate domestic governance and trade policies. As an example, the WSJ-Heritage indices
indicate Hong Kong and Singapore pursued the most enlightened governance policies of all the
developed and developing countries and also had the highest values for most of the performance
variables. No doubt, Hong Kong and Singapore's export and GDP growth would have been
even greater had not their goods encountered relatively high external barriers, but the correlation
results show they were more than overcome by the adoption of appropriate domestic policies.
There is an important message here for other developing countries who assign excessive
importance to the negative effects of foreign protectionism.
* The trade composition measures indicate that commodity and energy exporting
countries had a generally inferior record for many of the economic performance variables. In
particular, both groups recorded high negative correlations with the speed of integration index
(r = -0.367 and -0.332 respectively) and export value growth (r = -0.410 and -0.369). Overall,
larger countries also generally experienced somewhat higher GDP growth rates although these
relationships were not statistically significant when China and India were excluded from the
tests.
'3Since the WSJ-Heritage indices assign higher values to less "enlightened" governance policies the negative
correlations were anticipated. That is, countries that pursued more appropriate trade and governance policies were
rewarded with higher rates of economic growth.



15
Table 1. Analysis of the Correlation Between Economic Performance, Trade Policy Measures, Country Size, and the Composition of Exports
Economic Performance Variables
General Measures                          Export Growth            Import Growth
Level of GDP    Speed of      Openness      Growth of      Value      Volume        Value         Volume
Dependent Variables               per Capita    Integration    of Economy       GDP         Terms       Terms        Terms          Terms
Domestic Trade Distortions
Average Tariffs                   -0.436*        -0.177        -0.282*        0.088        0.034      -0.029       -0.113         -0.106
Average Tariff & Para-Tariffs     -0.392*        -0.041        -0.318*        0.048        0.084       0.034        -0.082        -0.032
NTB Frequency of Use Index        -0.292*        -0.048        -0.283*        0.003        0.018      -0.117        0.074          0.016
Heritage Trade Policy Index       -0.457*        -0.446*       -0.292*       -0.262*      -0.240*     -0.172       -0.337*        -0.423*
External Constraints
Average Tariffs Encountered       0.293*         0.439*        0.218*         0.436*       0.477*     0.462*        0.440*        0.521*
NTBs Encountered                  -0.119         0.346*        -0.008         0.276*       0.398*     0.329*        0.212*        0.337*
Overall Governance Index           -0.613*        -0.460*       -0.564*        -0.347*      -0.232*    -0.415*       -0.259*       -0.474*
Size Variables
Population                         -0.130        -0.009        -0.166         0.335*       0.229*     0.211*        0.241*        0.208*
Gross Domestic Product             0.165         0.176         -0.095         0.360*       0.389*     0.338*        0.329*        0.367*
Trade Composition Dummies
All Commodity Exports'            -0.077         -0.367*       -0.032         -0.171      -0.410*    -0.292*       -0.221*        -0.317*
Energy Exports2                   0.260*         -0.332*        0.052        -0.215*       1).369*    -0.107        -0.314*       -0.323*
'This variable takes a value of unity if the share of commodities in total exports exceeds 75 percent.
2This variable takes a value of unity in the share of energy products in total exports exceeds 75 percent.
*Statistically significant at the 95 percent confidence level



16
- Some of the correlations between average tariffs and paratariffs, or frequency indices
of NTB use in the developing countries, and performance variables like GDP or export growth
are not statistically significant. However, the correlations between the more comprehensive
WSJ-Heritage trade index and almost all the performance variables are high and significant."4
Our analysis of the underlying data indicates a relatively high level of variation exists in the
relative importance of tariffs as opposed to nontariff barrier in many countries. Some countries
rely primarily on tariffs for protection while others are primarily dependent on nontariff barriers
(see Annex Table 7 for evidence on this point). As a result, any statistical tests that do not
account for the joint impact of these import barriers (as does the WSJ-Heritage index) will not
adequately reflect the true influence of domestic trade policies on economic performance. This
has important implications since most previous analyses of the influence of domestic trade
barriers on economic performance have not utilized measures that reflect the combined influence
of both types of interventions.
B. The Influence of Governance Variables on Economic Performance
Given the very strong correlations between the overall WSJ-Heritage governance index
and the economic performance measures, Table 2 provides a more detailed analysis of the
influence of the individual components of this measure. Here, each of the ten component
governance indices were correlated with the measures of economic performance. It should again
be noted that higher WSJ-Heritage index values are associated with "inferior" governance
policies so negative correlations were expected. To assist in evaluating this information, the
lower portion of the table shows the number of significant negative correlations between the
governance indices and each economic performance measure, as well as the average correlation
value. Similarly, the right-most column in the table shows the number of significant correlations
between each of the performance variables and the WSJ-Heritage indices. These indicate that
banking regulations and the composite WSJ-Heritage Index are significantly correlated with all
'4However, the tariff and NTB frequency of use measures are highly (negatively) correlated with several of the
performance variables like openness of the economy and the level of GDP per capita, The latter indicates that poorer
countries generally have higher domestic trade barriers which may, in turn, explain why they failed to achieve
higher income levels.



17
of the performance variables while wage and price controls are correlated with only three.
Perhaps the key point reflected in Table 2 is that significant negative correlations are
generally observed between almost all of the WSJ-Heritage governance indices and the economic
performance measures"5 Trade policy appears to have played a key role in accounting for a
country's level of GDP and speed of integration into the global economy, and has also had a
significant influence on export and import growth, and the growth of GDP. In terms of the
number of significant correlations, domestic trade and policies relating to banking regulations
appear to have had the greatest overall impact on economic performance (respectively, 7 and 8
of the correlations were significant), while wage and price controls had the least important
impact where only 3 of the correlations were significant.
Which economic performance variables appear to have been most, or least, affected by
the governance policies. The correlation between the general WSJ-Heritage index and the level
of GDP per capita (r = -0.613) is the strongest in the table followed by the speed of integration
index (r = -0.460) and "openness" (r = -0.564) measures. The lowest values occurred for the
correlations with the export and import value growth rates which may be the result of a failure
to differentiate between commodity or energy exporting countries in these tests. Overall, seven
or more of the correlations between the trade, government intervention, and banking policy
measures and performance variables are significant as opposed to five or fewer in the case of
taxation, monetary policy or wage and price control measures.
'5The reader should note that the previous analysis (Table 1) showed other variables such as the commodity
composition of exports and country size often had a significant impact on the performance variables, yet Table 2
does not account for the separate influence of these factors. These omissions might cause the correlations between
the governance and performance measures to understate the real importance of the former if there is a strong
relationship between the WSJ-Heritage indices and these variables..



18
Table 2. Analysis of the Correlation Coefficients Between Governance Measures and Economic Performance Variables
Economic Performance Variables
General Measures                          Export Growth         Import Growth      Number of
Significant
Level of GDP     Speed of       Openness      Growth of      Value      Volume    Value    Volume   Correlations
Governance Index Measure            per Capita     Integration   of Economy       GDP          Terms       Terms    Terms    Terms
Overall Governance Index             -0.613*        -0.460*        -0.564*       -0.347*       -0.233*    -0.415*   -0.259*   40.474*         8
Trade Policies                     -0.457*         -0.446*        -0.292*       -0.262*       -0.240*     -0.172    -0.337*   -0.423*        7
Policies Concerning Taxation       -0.469*         -0.223*        -0.419*        -0.082       -0.027     -0.326*    -0.064   -0.282*         5
Government Intervention            40.125          -0.419*        40.232*       -0.224*       4.267*     -0.297*    43.243*   43.338*        7
Monetary Policies                  -0.363*         -0.083        -0.363*        -0.279*       -0.119     -0.315*    -0.153    43.206*        5
Foreign Investment Regulations     -0.085          -0.335*        -0.204*       -0.210*       -0.281 *   -0.255*    -0.156   -0.271 *        6
Banking Regulations                -0.299*         -0.350*        -0.315*       -0.202*       -0.210*    -0.241 *   -0.243*   -0.367*        8
Wage and Price Controls            -0.192*         -0.186*        -0.331*        -0.149       0.035       -0.038    -0.042    -0.109         3
Security of Property Rights        -0.582*        -0.382*        -0.464*        -0.340*       -0.185     -0.400*    -0.184    43.429*        6
Overall Regulatory Controls        -0.680*        -0.363*         -0.563*       -0.305*       -0.167     -0.398*    -0.107   -0.354*         6
Black Market Index                 -0.660*         -0.357*        -0.518*       -0.300*       -0.106     -0.280*    -0.145   -0.368*         6
MEMO ITEMS
No. of Significant Correlations        9               10            11             9             5          9          4        10           --
with Expected Sign
Average Correlation Coefficient      -0.411         -0.396         -0.388        -0.245        -0.163      -0.285    -0.175         -0.329
'This variable takes a value of unity if the share of commodities in total exports exceeds 75 percent.
2This variable takes a value of unity in the share of energy products in total exports exceeds 75 percent.
*Statistically significant at the 95 percent confidence level.



19
C. The Combined Influence of Trade and Governance Policies
The previous correlation tests showed a strong significant relationship existed between
most of the individual governance and trade policy indices and the performance measures.
Countries which adopted policies conducive to industrialization and growth generally performed
better that those where such supportive policies were absent. This finding raises the question
of just how much of a country's economic performance is attributable to the combined influence
of trade and governance policies and how much is accounted for by other factors. For answers,
we employ a regression model similar to that used by Sachs and Warner (1998) for analyzing
the sources of economic growth. Our analysis does, however, differ somewhat in that we focus
on an alternative measure of performance - the World Bank's (1996) index of the speed with
which countries are integrating into the global economy. Our selection of this new performance
variable was largely based on the fact that a number of published studies already show
enlightened trade policies are linked with higher economic growth rates, so there appeared to
be little need to further verify this relationship. However, since we include the initial level of
each country's GDP per capita among the independent variables our selection of the integration
index as performance variable the tests should provide new insights concerning current thinking
on economic "convergence." That is, we attempt to determine whether poorer countries are
integrating faster into the global economy once one accounts for the influence of governance and



20
other policy variables.'6
Our empirical model for investigating these questions is structured as follows:
* The performance variable
-- The World Bank index of the speed of a country's integrating into the global
economy.
* The policy variables
-- The WSJ-Heritage governance index net of its trade policy component. That is, since
we wanted to examine the influence of the later separately we recalculated the WSJ-Heritage
index to reflect the average of the nine other policy variables.
-- The WSJ-Heritage trade policy index.
-- Other major "policy induced" variables. We felt that one defect of the WSJ-Heritage
index was that it did not adequately reflect governance policies bearing on the development of
"human capital" - a resource which appears to have been a major factor contributing to economic
growth. While various proxies could be used we employed the secondary school enrollment rate
for the population in the relevant age group. This measure should reflect the extent to which
national policies make continuing education available to the general population.
--  We also felt WSJ-Heritage was weak in reflecting governance policies toward
transport and communications - a number of studies highlight the importance of these factors in
today's international business environment. Recently compiled cross-country surveys provide
information on the number of years waiting time required for a telephone installation and we
adopted this measure as a proxy for governance policies bearing on ease of access to
communication facilities.17 Unfortunately, the education and communications measures were
16The World Bank (1996, pp. 25-32) conducted a number of empirical tests that show lines of causation run
from: (i) improved governance policies, to (ii) a faster pace of global integration, to (iii) accelerated economic
growth and also discussed the theoretical bases for these relations. In one test, the Bank used estimates by Sachs
and Warner (1995) of the dates when countries established open policy regimes and found a statistically significant
increase in the countries' speed of integration in the five years after opening compared with the five years before
it. The Bank also computed speed of integration indices for 115 countries and showed that the growth in GDP per
capita over 1984-93 was significantly greater for countries deemed to be either "fast" or "moderate" integrators as
opposed to those whose integration was held to be "weak" or "slow".
"Statistics on waiting times were drawn from the International Telecommunications Union, 1997 World
Telecommunication Development Report. For the countries in our sample these waiting times range from a few
weeks to over 10 years as in the case of Tanzania, Malawi, Nepal, Syria and Algeria.



21
not available for 5 countries included in Table 1 and 2 correlation results so they had to be
dropped from these further empirical tests.
The structural variables
-- The initial income level as measured by the log of GDP per capita was chosen. The
rationale here was to make our empirical results comparable to those of previously published
"growth" studies. Other analyses show that, once account is taken of relevant structural
variables, poorer countries tend to grow faster than those with higher incomes. Our approach
should show whether a similar "convergence" phenomena is occurring for the speed of economic
integration.
-- A dummy variable was added to identify countries where primary commodities
accounted for 75 per cent or more of total exports. This variable was included given its strength
in the previous correlation tests.
Variables reflecting the influence of external barriers
- The average level of tariffs facing each country's exports.
-- The NTB coverage ratio for each country's exports. Both measures were included
to further test the influence of foreign protectionism as a constraint to integration, and to help
assess the validity of arguments that external trade barriers are a major constraint to developing
countries economic prospects..
Table 3 presents the results when these variables were tested in a multiple regression
equation. Equation (1) shows the policy and structural variables account for over 50 percent of
the variation in the speed of integration index and all take the anticipated directional sign. Four
variables, the composite WSJ-Heritage index, the trade policy index, the commodity export
dummy and the GDP measure are significant at the 99 percent level with the other variables
achieving significance at somewhat lower confidence levels.



22
Table 3
Cross-Country Regression Results
(Dependent Variable is the Speed of Integration into the Global Economy)
Regression
Explanatory Variable                    1              2               3
Composite Heritage Index             -0.192          -0.194          -0.203
(2.789)        (2.667)         (2.776)
Heritage Trade Policy Index          -0.248          -0.248          -0.247
(2.954)        (2.934)         (2.920)
Communications Waiting Time          -0.053          -0.053          -0.055
(1.870)        (1.858)         (1.903)
Secondary Enrollment Rate             0.007          0.007           0.005
(1.751)        (1.376)         (1.057)
Commodity Export Dummy               -0.635          -0.644          -0.697
(3.142)        (2.763)         (2.565)
Log of GDP                           -0.180          -0.181          -0.157
(2.020)        (2.005)         (1.612)
Foreign Tariff Level                                 -0.005          -0.017
(0.082)        (0.275)
Foreign NTB Incidence                                                 .007
(0.923)
Standard Error                        0.758          0.754           0.758
R2                                    0.545          0.546           0.549
Note: T statistics are shown in parentheses



23
Two key findings follow from equation (1). First, the highly significant negative
coefficients show countries that adopted less restrictive trade and governance policies were able
to globally integrate faster than countries where liberal policies were not implemented. This
conclusion parallels the findings of related analyses showing liberal trade policies were closely
correlated with higher economic growth rates. Second, once the influence of variations in
structural factors and national policies are accounted for equation (1) shows that poorer countries
are integrating more rapidly into the global economy than others. These findings of "integration
convergence" correspond directly to those relating to economic growth.
Equations (2) and (3) add the variables on foreign tariffs and nontariff barriers. Both
terms fail to achieve statistical significance, and the NTB coverage ratio even takes the wrong
directional sign.'8 As is evident from comparisons of the R2 their inclusion does nothing to
improve the explanatory power of the model. The general message that follows from these
results is that foreign protectionism appears to be a far less important constraint to improved
economic performance than is the nature of the national trade and governance policies a country
adopts.
IV. POLICY IMPLICATIONS FOR AFRICA
The previous correlation and regression analyses demonstrated that trade and other
government policies directly influence economic performance and the speed of integration.
Countries that pursued less oppressive governance and trade policies generally achieved
significantly higher levels of GDP per capita, they had higher trade and economic growth rates,
'8We also tested an "African dummy" variable in equation (1) to determine if countries in this region were in
some way different. We find no evidence of this as the dummy failed to achieve statistical significance.



24
and were more successful in integrating into the global economy. Although these findings have
important implications for all developed and developing countries, they raise questions of
particular relevance for Sub-Saharan Africa (SSA). Sub-Saharan Africa has been increasingly
marginalized in both trade and the global economy over the last two or three decades (Collier
1995 or Ng and Yeats 1997), and the region has a far below average record for almost all
measures of economic performance.'9   Furthermore, analyses of the external environment
show Africa faces very low tariffs which, due to preferences, are generally below those
encountered by other exporters of the same products and relatively few nontariff barriers
(Amjadi et. al. 1996). Foreign protectionism is not responsible for Africa's sub-par trade and
economic performance. Are Africa's wounds self-inflicted and the result of inappropriate
domestic policies?20 If so, just how much of an improvement in economic performance might
be expected if SSA countries were to implement less restrictive national governance policies.
For answers, we proceeded as follows. First, the countries used in our regression tests
were split into two groups, namely, Sub-Saharan African and all other developing countries.
'9Sub-Saharan Africa's share of world trade fell dramatically over the past forty years. Specifically, UNCTAD
reports that Sub-Saharan Africa's share of global exports went from 3.1 percent of global exports in 1955 to 1.2
percent in 1990 - a decline that implies annual trade losses of roughly $65 billion (that is, exports would have been
$105 billion in 1990 instead of the actual $40 billion). The most striking feature of Africa's export performance
since the early 1960s is the major erosion in the region's ability to compete in international markets. For example,
in 1962-64 copper alloys were the region's single largest commodity export with Sub-Saharan Africa supplying 32
percent of all OECD imports. By 1991-93, however, Africa's market share had dropped more than 22 percentage
points to less than 10 percent. Similarly, Africa's market shares for other key commodities such as vegetable oils,
palm oil, palm nuts and kernels, and groundnuts dropped from 47 to 80 percentage points below earlier levels.
For the thirty most important non-oil exports combined, Africa's average share declined by more than 11 percentage
points (from 20.8 percent to 9.7 percent), which implies annual trade losses of about $11 billion (see Ng and Yeats
1997). That figure is almost equal to OECD official development assistance to Africa in 1991 - $10.9 billion.
20See Bauer (1984) for an early and perceptive analysis of the harm that developing countries may do to
themselves through the adoption of inappropriate trade and commercial policies. As far as one aspect of commercial
policy is concerned, Amjadi and Yeats (1995) show that unsound African policies that greatly reduced competition
for transport services greatly elevated freight costs for exports and has been a major factor behind the erosion of
Africa's trade shares in major OECD markets.



25
We then calculated both the average WSJ-Heritage trade and composite governance policy
indices for each group, along with their average speed of integration indices.  These
computations showed Africa's overall governance index was about 17 percent higher (more
restrictive) than the average for all the other countries (which had an index value of 2.88), while
the African trade policy index was about 20 percent above the 3.52 average for non-SSA
countries. Sub-Saharan Africa, as a region, applies governance policies that are less conducive
to industrialization and growth than in almost all other developing countries. We also found the
latter had a positive average speed of integration index of 0.33 (indicating they were successfully
integrating into the global economy) - the corresponding value for Africa (-0.485) was negative,
thereby indicating that ties between Africa and the global economy were growing at a far slower
pace, or even deteriorating.
We next postulated two different scenarios for change in both the African trade and
composite governance policy indices. Under the first, we sought to determine the likely impact
of the African countries improving their governance policies sufficiently to bring their average
index values up to levels of other non-African countries. Under our second scenario we sought
to determine the likely impact of a one point improvement in the African indices - that is,
lowering their average trade policy index value from 4.23 to 3.23, and overall governance index
from 3.36 to 2.36. Reductions of these magnitudes would place Africa in a policy range similar
to that for countries like Sri Lanka, Panama, Belize or Jordan - which are not exceptional in any
important respect.
Under our first scenario (improvement of Africa's governance indices to the "other
country" average) the speed of integration index for the region is predicted to rise by more than



26
55 percent (to -0.22 from -0.49), but still takes a negative sign. Examination of the regression
coefficients reported in Table 3 suggests this is due to the fact that most Sub-Saharan African
countries' exports are highly concentrated in primary commodities and exporters of these goods
appear to be at a disadvantage in integration efforts. However, under the scenario assuming a
one point improvement in both the trade and overall WSJ-Heritage governance indices, the SSA
integration index changes from negative to slightly positive. These findings suggest African
governments have options for reversing the region's long-term marginalization in the global
economy by implementing national policies more conducive to improved economic
performance.2"
Table 4 examines this assertion in more detail by providing information on the
governance practices in individual African countries. Shown here are the WSJ-Heritage
composite governance indices and, given its strong relationship to general economic performance
(see Table 2), the value of the trade policy index. In addition, the table also reports some of
the WSJ-Heritage observations concerning trade policy and facilitation in each country. Finally,
to provide a standard for comparison, the table provides similar information for Hong Kong,
Singapore, and Taiwan (China) - countries that achieved some of the highest economic and
export growth rates over the last three decades, and were also among the most successful in their
global integration efforts. The latter were chosen since it has been suggested that the quality and
nature of governance in the East Asian countries explain why their growth rates were
2"An important question is what impact changes in governance and trade policy indices might have on some
other economic performance variables. For answers, we re-ran the first regression in Table 3 with: (i) GDP per
capita, and (2) the growth in GDP per capita as performance variables. Our analysis of the regression coefficients
suggests that a one point increase in the trade and overall WSJ-Heritage indices could raise GDP per capita more
than seven-fold above its current level (about $500) and raise its annual growth rate by about 4 percentage points.
The R2 value for the level of GDP per capita regression was over 60 percent.



27
Table 4. The Quality of Governance and Trade Policies in Some Sub-Saharan Countries
Governance Index
Country        Overall    Trade Policy                             General WSJ-Heritage Observations on National Trade Policies
Angola              4.35           5         Angola is virtually a closed market. Its market is highly protected behind a wall of trade quotas and import licenses
which are required for all imports. Corruption in the customs service hamper imports.
Burkina Faso        3.50           5         Burkina Faso maintains a 5 percent customs, a variable duty on imports, a 4 percent statistical tax, among other taxes.
The country also applies import bans and quotas.
Cameroon           3.60            5         Cameroon's average tariff is about 30 percent. Cameroon also uses countervailing and anti-dumping duties to protect
inefficient domestic industries. Import licenses are required and at least 100 items are subject to import quotas.
Chad                3.80           5         Chad's average tariff is 15.8 percent, but the biggest deterrent to trade remains an unsafe and un-navigable road
system. Overall travel after dark is highly dangerous.
Congo               3.75           5         Congo's current average tariff is unknown. Tariffs on intermediate and consumer goods range from 35 to 50 percent.
The biggest non-tariff barrier is red tape, an inefficient customs, and theft of imported goods by government officials.
Djibouti            3.00           4         The largest barriers to imports in Djibouti are customs corruption, inadequate infrastructure to bring products to the
country, and poor banking and financial services.
Ethiopia            3.60          4+         Ethiopia applies a maximum tariff rate of 80 percent. The customs bureaucracy is cumbersome and inefficient.
Gambia              3.60           4         Gambia's average tariff is 13.5 percent. Some import bans are applied.
Ghana               3.10          4+         Ghana's average tariff is 12.5 percent. Handling and customs delays are frequent.
Guinea              3.45           5         Guinea has a flat tariff rate of 33 percent for almost all imports. Licenses are required for 'restricted" goods like
cement, rice, flour and other agricultural products.
Ivory Coast         3.35           5         The average tariff rate is 25.5 percent and there are quotas on some goods. The are government monopolies on
imports of some goods and customs fraud is extensive.
Kenya               3.05           4         Kenya's average tariff is 13.5 percent. The customs system is prone to corruption. Some imports including sugar,
maize, wheat and milk are banned.
Madagascar          3.24          4+         Madagascar's average tariff is 13.5 percent. Other taxes significantly raise the price of imports.
Malawi              3.55           5         Malawi's average tariff is 17.6 percent and it imposes strict import licenses on some agricultural goods.



28
Table 4. continued
Governance Index
Country        Overall   Trade Policy                             General WSJ-Heritage Observations on National Trade Policies
Mali                3.10           3        Mali's average tariff is 10 percent but the govemnment also applies a complex system of fiscal duties ranging from 5 to
30 percent. Import licenses are required.
Mauritania          3.80           5        Mauritania's average tariff is 20.3 percent and strict import inspections are required.
Mozambique          4.00          3 +       Mozambique's tariff rates range from 5 to 35 percent. The customs service is riddled with corruption.
Namibia             2.95           4        Namibia's average tariff is 24.4 percent. Imports must have associated letter of credit.
Niger               3.70           5        Niger's average tariff is 18.3 percent with some duties as high as 60 percent. Niger maintains some import bans.
Nigeria             3.20           5        Nigeria's average tariff is 18.3 percent and all goods are subject further charges totalling 6 percent. The list of banned
imports (including maize, eggs, processed wood and textiles) is substantial.
Rwanda              4.20           5        Import tariffs range from 10 to 60 percent. Rwanda's borders are essentially closed due to civil unrest.
Senegal             3.25           5        Senegal's average tariff is 23.6 percent. It applies import bans and strict licensing requirements.
Somalia             4.70           5        Tariffs play a minor role in restricting imports. A major impediment is corrupt customs officials confiscating goods.
Sudan               4.20           5        Sudan's average tariff is 24 percent and imports of about 30 products are banned.
Tanzania            3.25           3        Tariffs average 8.6 percent. The major hindrance to trade is the inefficient customs system.
Uganda              2.90           4        Tariffs range from 10 to 30 percent. Some imports are banned.
Zaire               4.20           4        Tariffs are at moderate levels and the greatest barrier to trade is customs corruption.
Zimbabwe            3.70           5        The average tariff is 30 percent. Customs procedures are complex and some textile and clothing imports are banned.
MEMO ITEM
Hong Kong           1.25           1        Hong Kong levies no import tariffs and has very few nontariff measures. Hong Kong is one of the World's most
Singapore           1.30           1        accessible markets. Singapore has exceptionally low tariffs of 0.3 to 0.5 percent and no nontariff barriers to trade.
Taiwan              1.95           2        Singapore's customs procedures are minimal.



29
so much greater than those in Africa.22
Several important points are reflected in Table 4. First, for the 28 African countries
included 16 (57 percent) received the lowest possible rating (an index value of 5) for their trade
policies, while an additional 9 (34 percent) received a "very poor" rating of 4 or higher.
Furthermore, the trade policy indices for all but three of the African countries (Mali,
Mozambique and Tanzania) were assigned values higher than the average composite governance
measure. African policies relating to trade, therefore, appear to be even more onerous than the
generally very repressive measures applied in other areas like banking, taxation, or security of
property rights.   In short, both our regression results and information presented in Table 4
strongly support the proposition that a major cause of Sub-Saharan Africa's poverty and dismal
economic performance lies in the nature of the policies these nations have imposed on
themselves. 23
'According to the World Bank (1997, p. 32) "Governments enormous impact on development is well illustrated
by contrasting economic performance of developing countries in Sub-Saharan Africa and East Asia. In 1960 incomes
per capita in much of East Asia were only a little higher than in Africa. Governments in the two regions were also
similar in size, although not in composition. African governments were already spending more on consumption,
primarily on public employment. By the mid-1990s, however, incomes in East Asia were more than five times those
in Africa and government consumption in Africa, relative to GDP, had ballooned to one-and-a-half times that in
East Asia. The sources of this divergence are complex, but it is widely believed that the superior performance of
the state in East Asia - the limits it set on its own growth, the soundness of the policies it adopted, and the
effectiveness with which it delivered services - made a powerful contribution to the growing gap in the quality of
life experienced by the average citizen between these two parts of the world."
23The World Bank (1997, p. 14) reached similar conclusions concerning the functioning of the state and quality
of governance policies in Sub-Saharan Africa in stating "Many countries in Sub-Saharan Africa are suffering from
a crisis of statehood - a crisis of capability. An urgent priority is to rebuild state effectiveness through an overhaul
of public institutions, reasserting the rule of law, and credible checks on abuse of state power. Where links between
the state, the private sector, and civil society are fragile and underdeveloped, improving the delivery of public and
collective services will require closer partnerships with the private sector and civil society."



30
V. SUMMARY AND CONCLUSIONS
Economists generally argue that the level and structure of a country's own trade barriers,
as well as the "quality" of other government policies, have a major influence on
industrialization, growth, and economic performance.  However, a problem  previously
encountered in attempts to test these relations empirically was that few common objective
measures of the quality of governance were available across a wide range of countries.
Furthermore, comparable statistics on tariffs and nontariff barriers in developing countries were
not easily accessible. Several new empirical sources of information help fill these information
gaps and were used to test the relationships between economic performance and: (i) the quality
of national governance, (ii) the nature and restrictiveness of a country's own domestic trade
polices, and (iii) the level of foreign trade barriers which a country faces in external markets.
The results show countries adopting less restrictive or "outward oriented" trade and
governance policies generally achieved significantly higher levels of GDP per capita, they
typically experienced significantly higher growth rates for exports, imports and GDP, and also
were more successful in integrating into the global economy.24 Our findings also extended
what is currently known about economic convergence. Once the influence of structural and
policy variables is accounted for poorer countries appear to be integrating faster into the global
24In our opinion an important conceptual error has been incorporated in a few recent studies
that examined Africa's recent trade performance. Ng and Yeats (1996) show that the massive
erosion of SSA countries import shares in OECD markets implies annual export earnings losses
of $65 billion. In contrast, Rodrik (1998) presents cross-country regression using recent data
and argues the, given their present size, African trade is about at expected levels. This line of
reasoning fails to recognize that if Africa had adopted more enlightened economic and
governance policies over the last three or four decades their economies would now be larger -
as would their actual trade levels.



31
economy than others. The message which follows is that the quality and nature of a country's
own domestic policies have a major impact on its rate of development, integration and growth.
This point is of paramount importance. In international forums, like the United Nations or World
Trade Organization, some developing countries argued that their relatively poor economic
performance is the result of an unfavorable external environment. Our findings provide little
support for this contention. Protectionism in foreign markets can reduce trade and economic
growth rates below otherwise achievable levels, but countries often have a wide range of options
for offsetting its adverse effects by adopting governance and trade policies that are more
supportive of commercial activity.
This study tested its empirical findings in a "case study" involving Sub-Saharan Africa.
Specifically, it attempted to determine if inappropriate trade and governance policies explain the
relatively dismal experience of Sub-Saharan Africa as reflected in almost all available measures
of achievement or economic performance? The evidence strongly supports this proposition.
Indices of the quality of local governance show African countries have generally adopted the
most inappropriate (restrictive) fiscal, monetary, property and wage policies, and their own trade
barriers (including customs procedures that are a major constraint to commercial activity) are
generally among the highest of any other regional group. James Wolfenson, President of the
World Bank, graphically highlighted the importance of such governance issues in a recent
(January 1998) address to the UN Economic Commission for Africa in Addis Ababa.
"But what do we see when we look at Africa? We see that Africa is missing out. Of
$300 billion in total foreign private capital flows, Sub-Saharan Africa received about $12
billion. And of that, only $2.6 billion in direct investments - a trivial number in relation
to the size and potential of this continent. But we also have to face facts. It is not just



32
because the private sector is myopic that less than 1 percent of direct investment comes to
Africa. Africa needs to set itself up to attract private investment, and that means a clean
regulatory environment, it means a judicial system that works, it means property rights,
corporate law, predictability in taxes and, in relations to governments, it means capacity-
building, health care, and the infra-structure necessary to go along with it. And it means
corruption must be stamped out. Without these, private investors simply will not invest."
The implications of this assessment, and our findings, are that Africa's most pressing
economic and trade problems will primarily have to be resolved by Africa itself and not by
outsiders.25 However, a graphic description by the World Bank (1997, p. 162) clearly
illustrates the magnitude of the problems many African countries face in attempting to improve
the functioning of their governments and governmental policies,
"Achieving a turnaround in the effectiveness of the state [in Sub-Saharan Africa] will
not be easy since the roots of state failure are many and complex. Chief among them has
been a continuing struggle between traditional forms of governance and social organization
(often based on tribes, lineages, and language and kinship groups) and modern forms of
government. High military expenditure and dysfunctional behavior of military personnel
(in the absence of other checks and balances) have been important impediments. These have
often reduced the transparency and accountability of public institutions to the extent that
governments have felt a decreasing need to explain and justify their actions to the domestic
population."
Implementing the needed improvements in governance will require major commitments,
resolve and dedication that many African leaders typically have not exhibited in the past.
However, for past and present problems to be effectively addressed such changes are clearly of
fundamental importance.
'The World Bank (1997, pp. 157-67) provides a thoughtful agenda for improving the quality of governance
policies in developing countries. As a general proposition it states (p. 157) that "Efforts to restart development in
countries with inefficient states must start with institutional arrangements that foster responsiveness, accountability,
and the rule of law."



33
Annex
Profiles of Protection in Developing Countries
The regression and correlation tests employed in this study showed an important inverse
relationship generally exists between the restrictiveness of a country's trade barriers and measures of
economic performance.  That is, ceterus panbus, the higher the combined level of national import
barriers the lower the level of its GDP per capita, the slower its rate of export growth and its speed of
global integration. Although economic performance was shown to depend on other factors, such as those
relating to the overall quality of governance, the finding concerning the importance of domestic trade
policies calls for further analysis of the level and variance of tariffs and NTBs in developing countries.
The purpose of this annex is to provide relevant empirical information regarding this point and to try to
determine if their are common cross-country factors influencing the use of these trade interventions.
Although trade barrier information for individual countries was collected for this study, and is
presented in the detailed appendix tables which follow, some aggregation procedure was needed to help
identify any common underling characteristics of these trade regimes, and to hold the this annex's
presentation to manageable levels. For this purpose a World Bank scheme that classified countries both
by geographic region and by income level was employed - see Annex Table 1 for a list of countries in
each group. That is, the 80 individual countries for which trade barrier information was available were
classified in ten groups like low income African, middle income Africa, or low income Asia.'5 In
addition, a previous World Bank study (Ng and Yeats 1996) identified 14 developing countries that
achieved compound annual growth rates for non-oil exports that exceeded the corresponding rate of
growth in world trade by at least one percentage point over the last three decades. Given these countries'
superior export performance there was an obvious interest in determining whether their domestic trade
policies were significantly less restrictive than those of other countries. As such, the tariff and nontariff
barrier data for these 14 countries were tabulated individually and then aggregated into a "fast growing
exporters" country group.26
A. The Level of Tariffs and Para-Tariffs
Annex Table 2 shows the average tariffs (both including and excluding para-tariff measures) for
the country groups employed in this analysis. The unweighted average tariff on all imports by the 80
developing countries is 22.4 percent, with the low income countries' tariff (32.2 percent) averaging about
14 percentage points above that for the middle income group.2' This point was expected from the
'Several modifications were made to the Bank scheme. First, little or no trade regime information was available
for some of the country-income level groups (like Low Income Americas) so they were not included in our analysis.
Second, we have chosen not to report results for regional breakdowns of the high-income Non-OECD countries due
to the similarities in their trade restrictions. That is, the level of post-Uruguay Round tariff and NTB protection in
these countries is now generally so similar that little would be gained by showing more disaggregate data for these
country groups.
26These countries include: Republic of Korea, Singapore, Saudi Arabia, Bahrain, Taiwan (China), Thailand,
Qatar, Malaysia, Indonesia, Jordan, Mexico, Hong Kong, Kuwait and Papua New Guinea.
2"This difference is significant at the 95 percent level. Table 1 also shows average tariffs and para-tariffs
computed using weights based on total imports of all individual countries. As anticipated, these are lower than the
simple averages due to the fact that, ceterus paribus, countries with lower import duties would import more.



34
Annex Table 1
Classification of Countries by Region and Income Levels
Country Group                           Countries Included
Benin, Burkina Faso, Burundi, Central African Republic, Cote d'
Low Income Africa      Ivoire, Ethiopia, Ghana, Guinea, Kenya, Madagascar, Malawi,
Mozambique, Nigeria, Sierra Leone, Somalia, Sudan, Tanzania,
Uganda, Zaire, Zambia, Zimbabwe
Middle Income Africa           Angola, Cameroon, Congo, Mauritius, Senegal
Low Income Asia            Bangladesh, China, India, Nepal, Pakistan, Sri Lanka
Middle Income Asia      Indonesia, Korea, Malaysia, Papua New Guinea, Philippines,
Thailand
Other European Countries                Romania, Turkey, Yugoslavia
Middle East           Bahrain, Iran, Jordan, Oman, Saudi Arabia, Syria, Yemen
North Africa                  Algeria, Egypt, Libya, Morocco, Tunisia
Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica,
Ecuador, El Salvador, Guatemala, Guyana, Haiti, Jamaica,
Latin America          Mexico, Nicaragua, Paraguay, Peru, Trinidad and Tobago,
Uruguay, Venezuela
High Income Non-OECD        Bahamas, Cyprus, Hong Kong, Kuwait, Qatar, Singapore,
Taiwan (China), United Arab Emirates
Republic of Korea, Singapore, Saudi Arabia, Bahrain, Taiwan
Fast Growing Exporters    (China), Thailand, Qatar, Malaysia, Indonesia, Jordan, Mexico,
Hong Kong, Kuwait and Papua New Guinea.
Source: Drawn from World Bank (1996)



35
previous correlations (Table 1) which show countries with relatively low trade barriers have achieved
significantly higher levels of GDP per capita.  The standard deviation for the low income countries'
tariffs (shown in parentheses) is about 17 percent which indicates a fairly wide range exists in the level
of import duties within this group. Indeed, analysis of the underlying tariffs shows these may vary from
an average of about 6 percent in the case of Madagascar to over 50 percent for Bangladesh, Burkina Faso
and Pakistan (see the Appendix Tables which follow). Regression tests indicate that differences in GDP
per capita can account for about 20 percent of the variation in developing countries' average tariffs.
Unlike the high income non-OECD countries, Annex Table 2 shows developing countries rely
far more heavily on para-tariff charges which may take various forms like customs surcharges and
surtaxes, taxes on foreign exchange transactions, import license fees or consular invoice fees (see Box
Al). Once the ad valorem equivalents of these additional charges are included the average incidence of
developing countries' duties increases to about 30 percent, which is five times the level of all OECD
import charges and close to 40 percent in the case of the low income developing countries.28
On a geographic basis the Middle East and Eastern European countries had the lowest average
tariff outside the high income non-OECD group (12.5 percent) followed by Latin America (18.1 percent)
and middle income Asia (19 percent). The highest average tariffs occur in low income Asian countries
(45.8 percent), but this figure does not account for recent substantial tariff reductions made by China and
India.29 African import charges are also well above average than those in most of the other developing
country groups.
Annex Table 2 shows that the averages for tariffs plus para-tariffs combined are 3 to 10
percentage points higher than those for tariffs alone, but no significant changes occur in the relative levels
of protection in the country groups.3O The greatest differences between the two averages occur for the
Middle East, Middle Income Africa, and Low Income Asian countries where the unweighted averages
increased by 10 to 16 percentage points - the smallest increase (3.5 percentage points) occurred in Middle
Income Asian countries.3' The table also shows that the tariff and para-tariff averages decline
28According to the UNCTAD data these special charges added 40 percentage points to India's nominal tariff of
53 percent, and more than doubled the incidence of Costa Rican, Iran, Jordan, Libya, Madagascar, Mauritius,
Trinidad and Tobago, Turkey and Zimbabwe's tariffs.
29An important question is how do the current levels of tariff protection in developing countries compare with
those that were historically applied in OECD markets. A report by the Carnegie Foundation indicates current
OECD members tariffs averaged about 40 percent in the 1940s which was higher than most of the averages reported
in Annex Tables I and 2. However, before the completion of the Kennedy Round in 1968, OECD tariffs had been
reduced to an average rate of about 18 percent which was about 7 points lower than the average level of tariffs and
para-tariff protection in all developing countries today.
"The Pearsonian correlation coefficient between the tariff and total import charge rates was 0.90 which is
statistically significant at the 1 percent confidence level.
3'A relevant question is why countries resort to para-tariffs instead of tariffs. Various factors appear to be at
work. Countries may apply customs surcharges to help rectify temporary balance of payments problems - as the
United States did in the early 1970s. Countries have also resorted to para-tariff charges to try and circumvent WTO
legal bindings on MFN tariffs, while in other cases these charges are tied to the use or development of some specific
infra-structure project like road or port improvements.



36
Annex Table 2. Average Tariffs and Para Tariffs on All Imports of Selected Country Groups
Simple Average                                     Weighted Average
Country Groupa                       Tariffsb          Tariffs and Para Tariffsc         Tariffs             Tariffs and Para Tariffs
Low Income Africa                  28.4 (13.8)               33.9 (14.6)                  23.9                       29.1
Middle Income Africa               27.5 ( 8.2)               38.1 (13.1)                  25.0                       35.8
Low Income Asia                    45.8 (21.9)               55.8 (29.5)                  39.2                       47.7
Middle Income Asia                 19.0 (10.7)               22.5 ( 9.6)                  17.0                       20.9
Other Europe                       12.5 ( 3.2)               17.8 ( 5.2)                  11.1                       15.6
Middle East                        12.5 ( 5.5)               28.6 (30.9)                  11.1                       23.4
North Africa                       25.1 ( 5.1)               32.0 ( 4.0)                  21.2                       27.9
Latin America                      18.1 ( 8.6)               24.4 (15.2)                  15.9                       21.1
All Low Income Countries           32.2 (17.5)               38.7 (21.0)                  27.3                       33.2
All Middle Income Countries        18.8 ( 9.2)               26.7 (17.6)                  16.6                       23.4
All Developing Countries           22.4 (14.8)               29.1 (20.2)                  19.4                       25.3
Fast Growing Exporters             10.8 ( 9.0)               13.2 (10.2)                  10.0                       12.6
HighIncome Non-OECD                 9.1 (10.2)               10.0 (11.4)                   8.5                        9.4
'Country group classifications are based on those in World Bank, Global Economic Prospects and the Developing Countries 1995, (Washington: World Bank,
1995). This table is based on a sample of 80 developing and 23 industrial countries.
bFigures in parenthesis are the standard deviation of the tariff rates within the group.
i' additional fiscal and other import charges such as stamp taxes, customs surtaxes, foreign exchange taxes, etc. Figures in parentheses are the standard
deviation of the import charges within the group.
Sources: UNCTAD (1987)(1994) and OECD (1996).



37
Box Al. UNCTAD's Classification Scheme for Trade barriers Measures
PARA-TARIFF MEASURES
1. Customs Surcharges
2. Additional Taxes and Charges
- Taxes on Foreign Exchange Transactions
- Stamp Taxes
- Import License Fees
- Consular Invoice Fee
- Statistical Taxes
- Taxes on Sensitive Products
- Other Additional Charges
3. Internal Taxes and Charges
- General Sales Taxes
- Excise Taxes
- Taxes and Charges for Specific Products
- Decreed Customs Valuation
PRICE CONTROL MEASURES
1. Administrative Pricing and Minimum Import Prices
2. Voluntary Export Price Restraint
3. Variable Levies or Charges
4. Anti-Dumping Measures
5. Countervailing Measures
FINANCE MEASURES
1. Advance Payment Requirements
2. Multiple Exchange Rates
3. Restrictive Foreign Exchange Allocation
4. Regulations for Terms of Payment
QUANTITY CONTROL MEASURES
1. Non-Automatic Licensing
2. Quotas
- Global Quotas (Allocated or Unallocated
- Bilateral Quotas
- Seasonal Quotas
- Quotas Linked with Other Purposes
3. Prohibitions
4. Export Restraint Arrangements
- Voluntary Export Restraints
- Orderly Marketing Arrangements
- Multifiber Arrangement
5. Enterprise Specific Restrictions
MONOPOLISTIC MEASURES
1. Single Channel or State Trading
2. Compulsory National Services
TECHNICAL MEASURES
1. Technical Regulations
2. Pre-Shipment Inspection
3. Special Customs Formalities



38
as one moves from lower to higher income groups (Low and Middle income Africa is an exception). One
possible explanation for this inverse tariff-income relation is that many low income countries must rely
more heavily on customs revenues for state finance since other forms of taxation may be more easily
evaded. Infant industry considerations may also be a factor here. As one moves from the middle to low
income countries industries may become "more infantile" and require higher levels of protection to
survive.32
B. Sectoral Tariffs and Para-Tariff Protection
A sectorial analysis of our tariff statistics shows that developing countries' duties on manufactured
goods are generally higher than those on any other product category with the exception of foodstuffs (see
Annex Tables 3 and 4).  For all developing countries combined tariffs and para-tariffs averaged 30
percent on all manufactured goods and are about 8 percentage points higher on the "other manufactures"
group. The latter generally consists of labor intensive items like textiles, clothing, footwear, and leather,
wood and paper manufactures which are classified in Standard International Trade Classification (SITC)
groups 6 and 8. This sector are also generally afforded the highest tariff and nontariff protection in
OECD markets. Another common feature is that developing countries' countries' tariffs also appear to
"escalate" or increase sharply as a specific good experiences further processing (Yeats 1987)
Annex Table 4 examines the sectorial level of tariff and para-tariff protection for primary
products and also indicates parallels exist here with the pattern of OECD protection. Foodstuffs are
among the most highly protected products in all regional groups with the overall developing country
average duty (34 percent) exceeding that for all manufactures by 4 percentage points.3  In contrast,
protection for products that are generally employed as manufacturing inputs, like agricultural raw
materials or ores and metals, typically have relatively low levels of protection so as not to undermine the
competitive position of their end-use products.
32Some developing countries made major progress in liberalizing their trade regimes since the 1980s, often in
the context of structural adjustment reforms supported by the World Bank (see Nash and Thomas 1991 for a
discussion). Comparisons of data for the 1980s (UNCTAD 1987) with our current statistics show the greatest tariff
reductions of about 15 to 25 percent occurred in Middle Eastern countries and from 12 to 2 percent in high income
non-OECD countries. The latter decline was almost entirely due to Singapore and Hong Kong's almost complete
removal of all tariffs. Most of the fast growing exporters also implemented substantial reforms in the mid-1980s
as their tariffs were cut roughly in half to the levels shown in Annex Table 2. Until recently Low Income Africa
made little progress in implementing tariff reforms.
33As a result of the Uruguay Round OECD nontariff barriers on agricultural products were converted to tariffs -
often at very high levels. Ingco (1995) shows that Japan's "tariffied" NTBs provide levels of protection exceeding
200 percent for wheat and sugar and over 500 percent for rice.  In the European Union rice, sugar, and dairy
products all have levels of protection exceeding 200 percent. United States sugar producers are protected by tariffs
of approximately 200 percent.



39
Annex Table 3. Regional Countries' Sectorial Averages for Tariffs and Para Tariffs on Manufactured Goods
Transport
All                                                 Equipment           Other
Country Groupa             Manufactures       Chemicals        Iron and Steel    and Machinery      Manufactures
Low Income Africa             33.8               25.9              25.3               24.8              43.0
Middle Income Africa          39.2               27.9              33.9               35.0              47.7
Low Income Asia               58.2               48.9              50.3               48.0              68.5
Middle Income Asia            24.0               16.7              12.6               20.3              30.3
Other Europe                  18.8               14.5               9.7               16.1              23.2
Middle East                   30.2               18.0              15.4               20.3              42.2
North Africa                  31.9               20.9              16.3               26.6              41.2
Latin America                 24.4               15.6              15.2               18.7              34.4
All Low Income Countries      39.3               31.0              30.9               30.0              48.6
All Middle Income
Countries                     27.8               18.0              16.7               21.7              36.5
All Developing Countries      29.9               21.4              20.6               23.3              38.1
Fast Growing Exporters        14.1               10.3               8.9               12.5              16.6
High Income Non-OECD          10.7               8.4                8.3               9.6                11.3
aCountry group classifications are based on those in World Bank, Global Economic Prospects and the Developing Countries 1995, (Washington:
World Bank, 1995). See Annex Table 1 for a listing of the countries in each group.
Sources: UNCTAD (1987)(1994) and OECD (1996).



40
Annex Table 4. Regional Countries' Sectorial Averages for Tariffs and Para Tariffs on Primary Products
All Primary                   Agricultural     Ores and         Mineral       Non-Ferrous
Country Groupa              Products      Foodstuffs      Materials        Metals           Fuels          Metals
Low Income Africa            33.8           42.1            29.5            23.1            20.9            27.5
Middle Income Africa         34.9           38.2            32.5            29.2            31.9            34.1
Low Income Asia              49.2           59.4            41.9            36.5            33.6            45.9
Middle Income Asia            18.4          24.6            15.9            9.4             14.5            14.8
Other Europe                  15.4          23.5            10.6            8.1             10.1            8.3
Middle East                  24.7           34.0            17.7            15.2            14.9            17.1
North Africa                 32.1           47.7            19.9            17.2            15.1            20.2
Latin America                21.7           27.9            17.4            16.0            16.0            14.8
All Low Income Countries     37.2           45.9            32.3            26.1            23.7            31.6
Middle Income Countries      23.9           31.5            18.7            16.1            16.9            17.5
All Developing Countries     26.8           34.0            22.2            18.5            18.3            21.3
Fast Growing Exporters        10.5          13.4            8.9             6.5             9.0              8.9
High Income Non-OECD          8.2            8.4            8.1             7.0             7.5             8.0
aCountry group classifications are based on those in World Bank, Global Economic Prospects and the Developing Countries 1995, (Washington:
World Bank, 1995). See Annex Table 1 for a listing of countries in each group.
Sources: UNCTAD (1987)(1994) and OECD (1996).



41
C. The Importance of Nontariff Trade Measures
In addition to tariffs and other import charges, countries often apply different types of nontariff
measures (NTMs) to imports (see Box Al for a listing).34   UNCTAD compiled one of the most
comprehensive databases on these measures, which are applied at the tariff line level, and often was able
to match this information with actual trade data. However, there are important limitations of the
UNCTAD database in that it does not provide any information on a measure's nominal equivalent, nor
does it provide any indication of changes in the intensity of application. If, for example, quantitative
restrictions are eased to permit increased imports this would not be reflected in UNCTAD's statistics
which only indicate whether or not an NTM is applied. Similarly, if the administration of health and
safety regulations, or technical standards, becomes more, or less, rigorous this fact would not be reflected
in the databasge Third, no information is available on measures like export subsidies or special export
rebates that might be considered nontariff "distortions" to trade. These types of export incentives have
been a major source of contention, particularly in agriculture (wheat, sugar and dairy products) as well
as ferrous metals.  These limitations are probably the reason why the previously reported correlations
between the NTM indices and the economic performance measures were generally weak or not
statistically significant.
For empirical analyses involving NTM inventories several summary indices have been used. One
measure is a frequency index (Fl) showing the percentage of tariff lines covered by some pre-selected
group of nontariff measures. This index (Fl) is defined by,
(A.1)  Fj =  (EDiN,   N) * 100
where N, is tariff line i, Di is a dumnmy variable that takes a value of unity if one or more NTMs is
applied to the item or zero otherwise, and N, is the total number of tariff lines in the product group. The
above summation is made over all countries exporting to the importing country j.3 This index was
34As Baldwin (1970) and Walter (1972) show the problem of defining what measures constitutes a nontariff
barrier and what measures do not has been more difficult than many might suppose. Laird and Yeats (1990) outline
the methodologies used for estimating NTM ad valorem equivalents and also provide information on how the
UNCTAD NTM database was constructed. The latter source also provides information on previous applications
of the database in research and policy studies.
351f matched tariff-line-level import data are available, in which individual countries of origin for shipments are
identified, a second index showing the share of total imports subject to NTMs can be computed. This trade
coverage measure (Ci) is defined as,
(A.2)  Cj =  ((EDitm  * V         x 100
where Vi,,-n represents the value of imports in tariff-line item i in year (t-n), and D,, is a dummy variable that takes
a value of unity if an NTM is applied to the item and zero otherwise. If n and m are zero the index is based on
current trade values, otherwise it is expressed in a base year trade weights. In some cases they may be quite
misleading in this respect. For example, no trade may occur because of a highly restrictive NTM - in which case
the coverage ratio would be zero. The frequency measure (equation A. 1) would not be so affected which is why
economists may compare the results from the two indices. Note, that frequency indices assign all traded goods
equal weights. That is, an NTM on (say) umbrellas would be treated the same as one on automobiles.



42
Annex Table 5. Average Tariffs plus Para Tariffs and Nontariff Barrier Frequency Ratios for Sectorial Groups of Developing Countries
Average Tariff plus Para Tariffs                      NTM Frequency Ratio
All           Primary           All              All             Primary            All
Country Groupa                 Items          Products       Manufactures        Items           Products       Manufactures
Low Income Africa               33.8            33.8            33.8             39.0              40.0             38.6
Middle Income Africa            38.1            34.9            39.2              13.7             11.0             14.4
Low Income Asia                 55.8            49.2            58.2             23.7              24.8             23.1
Middle Income Asia              22.5            18.4            24.0              10.1             12.3             9.2
Other Europe                    17.8            15.4            18.8             41.9              43.5             41.1
Middle East                     28.6            24.7            30.2             26.6              28.6             25.8
North Africa                    32.0            32.1            31.9             25.1              33.2             21.8
Latin America                   24.4            21.7            24.4              14.6             17.1             13.4
All Low Income Countries        38.7            37.2            39.3             35.6              36.6             35.1
All Middle Income Countries     26.7            23.9            27.8              18.7             21.1             17.7
All Developing Countries        29.1            26.8            29.9             23.5              25.6             22.6
Fast Growing Exporters          13.2            10.5            14.1              5.7              11.0             3.6
High Income Non-OECD            10.0            8.2              10.7             9.4              14.1              7.6
'Country group classifications are based on those in World Bank, Global Economic Prospects and the Developing Countries 1995, (Washington: World Bank,
1995). See Annex Table I for a listing of the countries in each group.
Sources: UNCTAD (1987)(1994) and OECD (1996).



43
employed in our correlation tests (see Table 1).
Annex Table 5 shows NTM frequency indices for the 14 country groups which were computed
using entries for the so called "hard core" measures whose intent is normal the restriction of trade. These
are measures like quotas, variable import levies, or restrictive licensing arrangements. We have,
however, excluded some NTMs like health and sanitary requirements which may be applied for legitimate
social reasons. The NTM ratios were computed for all items as well as for primary products and
manufactures separately. Finally, the table also shows average nominal protection from all tariffs and
paratariff charges. The intention here is to provide some initial indication on the joint (complementary
or offsetting) use of nontariff measures and from import charges. Annex Table 8 will address this
question in more detail.
Several important points are evident from these statistics. First, there is considerable variation
in the value of NTM frequency ratios which suggests important differences exist in reliance on these types
of interventions across the country groups. Low Income African countries and the "Other Europe"
register the highest frequency of NTB use with about 40 percent of all tariff line items affected by these
measures.36 This ratio is about two and one-half times higher than that for the high income non-OECD
countries and about six to seven times higher than in the fast growing exporters group.37
Second, an analysis of the underlying data shows that quantitative restrictions (QRs) are the most
widely applied type of NTM used by developing countries. Quantitative restrictions are applied to
approximately 30 percent of all Low Income African imports, while about 9 percent of imports encounter
some other nontariff measures.38   For all developing countries combined the QR ratio on all imports
(18.3 percent) is only 5 points lower than that for all forms of nontariff measures. Quantitative
restrictions constitute over 90 percent of the nontariff measures applied in 6 of the 14 country groups and
at least 75 percent of the measures employed in all of the groups with one exception (Other Europe).
This point has important (negative) efficiency implications, particularly with regard to the effects of tariffs
36The relatively high ratio for the countries classified in "other Europe" is largely due to Turkey which applies
customs surcharges and QRs to some major imports.
37The OECD ratios reported in Annex Table 4 reflect the situation prior to the Uruguay Round and there is
every indication that they will be significantly reduced as a result of the negotiations. Specifically, the Round
achieved agreement that all forms of nontariff barriers applied to agricultural products would be converted to tariffs
while all "voluntary" export restraints (VERs) would be eliminated. In addition, all nontariff barriers imposed under
the Multifiber Arrangement (MFA) would be phased out over a ten year period. As a result, Low and Yeats (1 995)
estimate that the 17 percent OECD NTM frequency index shown in Annex Table 4 will fall to 3 to 4 percent once
the Uruguay Round agreement is fully implemented.
38The problem of "stacking" or the multiple application of different types of NTMs on a single product could
potentially complicate these comparisons. For example, if price control measures were also applied to a high share
of the items facing QRs a comparison of the results presented in Annex Tables 6 and 7 would cause the importance
of the former to be understated. As an example, US sugar and beef imports recently faced both a quota and a
variable levy.



44
Annex Table 6. Regional Countries' Sectorial Average Nontariff Barrier Ratios for Primary Products
All Primary                  Agricultural     Ores and        Mineral       Non-Ferrous
Country Groupa             Products      Foodstuffs      Materials       Metals           Fuels          Metals
Low Income Africa            40.0          45.9            36.4           30.8            35.9            35.2
Middle Income Africa         11.0          13.6            10.6            5.4             5.9            10.8
Low Income Asia              24.8          29.8           23.6            16.8            31.1            11.0
Middle Income Asia           12.3          20.2            5.0             4.1            15.1            0.7
Other Europe                 43.5          44.0           46.2            40.1            32.0            47.6
Middle East                  28.6          36.4           24.8            18.1            29.9            14.4
North Africa                 33.2          58.5            7.7             6.8            34.1            6.9
Latin America                17.1          26.7            10.1            3.5            17.3            6.0
All Low Income Countries     36.6          42.3            33.6           27.7            34.8            29.8
Middle Income Countries      21.1          30.6            13.9            8.9            20.5            10.0
All Developing Countries     25.6          33.8            19.9           14.8            25.2            16.2
Fast Growing Exporters       11.0          19.8            3.9             2.9            9.4             2.6
High Income Non-OECD         14.1          23.3            7.1             4.5            18.5            4.7
aCountry group classifications are based on those in World Bank, Global Economic Prospects and the Developing Countries 1995, (Washington:
World Bank, 1995). See Annex Table 1 for a listing of the countries in each group.
Sources: UNCTAD (1987)(1994) and OECD (1996).



45
Annex Table 7. Regional Countries' Sectorial Average Nontariff Barrier Ratios Manufactured Goods
All                                                 Transport           Other
Country Groupa             Manufactures       Chemicals        Iron and Steel      Equipment         Manufactures
and Machinery
Low Income Africa             38.6               33.1              37.8               36.8              42.0
Middle Income Africa          14.4               8.3               14.1               12.0              18.4
Low Income Asia               23.1               18.6              27.4               14.5              29.0
Middle Income Asia             9.2               9.0                7.6               16.0               6.0
Other Europe                  41.1               34.4              60.6               40.2              42.2
Middle East                   25.8               22.2              18.5               26.9              27.7
North Africa                  21.8               17.2               6.0               13.4              30.0
Latin America                 13.4               10.7               9.5               7.6                18.0
All Low Income Countries      35.1               29.9              35.5               31.9              39.1
Middle Income Countries       17.7               14.3              14.2               15.0              20.9
All Developing Countries      22.6               19.0              20.5               20.1              25.6
Fast Growing Exporters         3.6               4.7                4.8               3.5                3.3
High Income Non-OECD           7.6               9.1                5.9                9.4               6.6
aCountry group classifications are based on those in World Bank, Global Economic Prospects and the Developing Countries 1995, (Washington:
World Bank, 1995). See Annex Table 1 for a listing of the countries in each group.
Sources: UNCTAD (1987)(1994) and OECD (1996).



46
and some other forms of nontariff restrictions.39
A more disaggregate analysis of the incidence of NTMs (Annex Tables 6 and 7) shows that
foodstuffs and the "other manufactures" group (the latter is largely composed of goods that are labor
intensive in production) generally have the highest frequency of NTB application. About 45 percent of
low income Africa's and other Europe's imports of foodstuffs encounter NTMs which the ratio for North
Africa approaches 60 percent (Annex Table 6). About 40 percent of the low income countries imports
in the other manufactures group face NTMs which is about 5 points higher than the corresponding ratio
for all manufactured goods (Annex Table 7).
NTM use in developing countries is considerably higher than that in OECD members, but the
sectorial distribution of these measures' application is generally similar. Perhaps the largest difference
occurs for the mineral fuels group where approximately 25 percent of all developing countries' imports
encounter some form of restriction (Annex Table 6) while the corresponding ratio for the OECD countries
is under 3 percent.
Does NTM protection generally substitute for, or reinforce, protection by tariff and paratariff
charges. The evidence from Annex Table 5 provided some evidence in support of the latter proposition
since low income countries higher than average import charges and relatively high NTM frequency ratios.
Annex Table 8 provides a different perspective on this question by first classifying countries in three
groups, that is those with low, medium, and high tariffs (see the first column) and then further assigns
these countries to one of three groups based on a low, medium or high frequency of NTN use. This
cross-classification is helpful in showing how developing countries jointly apply these trade interventions.
The profiles that emerge from Annex Table 8 reveal considerable variation in the use of these
trade restrictions across individual countries. One group of about 21 developing countries (Angola,
Argentina, Bahrain, etc.) has set both tariffs and NTBs at relatively high levels which would reinforce
each measure's protective effects. However, there are a number of cases where NTB protection appears
to substitute for tariffs (countries like Cyprus, Ecuador, Guinea, etc.) or where high tariffs are applied
with few NTBs (Bahamas, Burundi, etc.). In short, what Annex Table 8 shows is that individual
developing countries apply these restrictions in a variety of different ways - sometimes in a
complementary and sometimes in an offsetting fashion.
This latter finding concerning the wide variation in the ways individual countries utilize tariffs
and NTBs has important implications for future empirical tests of the relationship between trade policies
and growth. Empirical analyses that correlate (say) rates of GDP growth with either: (i) tariff levels, or
(ii) some index of NTM usage have generally produced weak or even non-significant results. Our data
39As noted that there is reason to believe the detrimental impact of quantitative restrictions and some other
NTMs is considerably greater than that of tariffs. Specifically, if foreign producers become increasing efficient
relative to domestic suppliers in developing countries they may be able to erode a tariffs protective effects over time.
This would increase developing countries' nationals' access to lower cost foreign products, which would improve
living standards and the regions ability to compete in foreign markets. Under quotas and other quantitative
restrictions, however, no such beneficial adjustment is possible as the volume of goods that can be imported are
subject to fixed ceilings. Instead of potentially narrowing, as in the case of tariffs, the gap between developing
countries that use these measures standard of living and production efficiency would further worsen relative of other
countries.



47
Annex Table 8. The Relation Between Average Tariffs and Nontariff Measures in 80 Developing Countries.
Nontariff Measure Frequency Index (%)                               Number    Average
Average                                                                                                          of        Tariff
Tariff Level              Low (under 10%)                 Medium (10 to 20%)          High (Over 20%)          Countries     Rate
Low         Angola, Argentina, Bahrain, Bolivia, Chile,    El Salvador, Jordan  Cyprus, Ecuador, Guinea,
Tariffs      Colombia, Costa Rica, Hong Kong, Korea,                          Haiti, Nicaragua, Syria, Taiwan    33        9.2%
(under 10%)     Kuwait, Madagascar, Malaysia, Mexico,                            (China), Turkey, Yugoslavia
Oman, Papua New Guinea, Qatar, Romania,
Saudi Arabia, Senegal, Singapore, U.A.E.
Medium       Algeria, Brazil, Cote d' Ivoire, Guatemala,  Guyana, Libya,         Cameroon, Ghana, Iran,          25
Tariffs         Indonesia, Jamaica, Nepal, Paraguay,      Uganda, Uruguay            Malawi, Morocco,                      18.2%
(15 - 25%)               Thailand, Venezuela                                   Mozambique, Peru, Philippines,
Trinidad & Tobago, Yemen,
Zaire, Zimbabwe
High         Bahamas, Burundi, Central African Rep.,       Benin, China,        Bangladesh, Burkina Faso,       22        35.6%
Tariffs         Congo, Nigeria, Somalia, Sri Lanka,       Pakistan, Sudan      Egypt, Ethiopia, India, Kenya,
(over 25%)                    Zambia                                              Mauritius, Sierra Leone,
Tanzania, Tunisia
MEMO ITEM
Number of
Countries                        39                               10                         31
Average
NTM Ratio                        2.9%                            13.9%                      52.4%



48
indicate a measure that reflects the way tariffs or NTBs are being employed jointly (as does the WSJ-
Heritage trade policy index) must be used in such analyses if the results are to be einpirically valid.



49
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Appendix Tables



53
Table A.l: Weighted and Unweighted Average Tariffs /a and Total Import Charges /b for All
Products in 80 Developing Countries
Unwgt Unwgt Ave    Import   Imp Wgt          Unwgt   Imp Wgt  Populat-          GDP   GDP Per
Ave      Para+   Wgt Ave       Para+   Ave All   Ave All  ion 1994          1994    Capita
80 LDCs /c           Tariffs   Tariffs   Tariffs   Tariffs           NTMs        NTMs     (Mill)  ($ Mill)  1994 ($)
1  Benin **                37.4       49.4       30.7       42.2        17.0       31.1        5.3        1522      287.2
1  Burkina Faso *         60.8        76.8       52.8       67.5        80.6       86.8       10.1       1856       183.8
1 Burundi                 36.9        37.9       28.9       29.9         0.3        0.8        6.2        1001      161.5
1  Centr Afr Rep **        32.0       39.3       26.7       33.7         5.1       16.7        3.2         872      272.5
1  Cote d'Ivoire **       23.3        25.3       21.5       22.9         6.6       20.6       13.8        6716      486.7
1  Ethiopia                29.6       31.2       23.2       24.7        22.5       16.7       54.9        4688       85.4
1  Ghana **                29.6       33.0       29.3       31.0        48.4       38.4       16.6        5421      326.6
1  Guinea **                8.9        8.9        8.4         8.4       38.2       39.9        6.4        3395      530.5
1  Kenya                  43.7        44.7       36.8       37.8        37.8       29.8       26.0        6860      263.8
1 Madagascar                6.1       40.1        5.5       36.0         1.7        1.7       13.1        1918      146.4
1  Malawi                  15.2       15.2       13.1       13.1        91.3       91.8        9.5        1302      137.1
1  Mozambique              15.6       25.6       14.5       24.5        56.9       61.0       15.5        1467       94.6
1  Nigeria                 32.8       39.8       26.5       33.5         8.8        7.6      108.0      35200       325.9
1  Sierra Leone **        25.8        25.8       21.8       21.8       100.0      100.0        4.4         843      191.6
1 Somalia **              30.8        31.0       24.6       24.8         6.3       13.0        8.8         917      104.2
1  Sudan **               56.6        56.6       47.0       47.0        10.0        8.0       27.4        5989      218.6
1  Tanzania               29.8        29.8       22.8       22.8        79.7       80.4       28.8        3378      117.3
1  Uganda **               19.9       19.9       18.1       18.1        13.9       19.7       18.6       4001       215.1
1  Zaire                  20.7        20.7       17.1       18.2       100.0      100.0       42.5        8769      206.3
1  Zambia **              29.9        29.9       25.8       25.8         0.0        0.1        9.2        3481      378.4
1  Zimbabwe                10.1       30.1        7.6       27.6        93.6       97.4       10.8        5432      503.0
2  Angola **               11.6       20.6       11.2       20.0         0.7        2.2       10.4        7287      700.7
2  Cameroon **             32.0       42.2       27.0       37.0        20.7       15.3       13.0        7470      574.6
2  Congo **                32.0       33.2       26.7       28.7         4.6        5.3        2.6        1578      606.9
2  Mauritius               27.6       60.3       30.1       63.2        35.2       34.8         1.1       3385    3077.3
2  Senegal **              34.2       34.2       29.8       29.9         7.2       14.9         8.3       3881      467.6
3  Bangladesh              81.2       83.2       65.1       67.1        49.4       55.1      117.9      26164       221.9
3  China                   37.5       37.5       30.6       30.6        11.3       26.4    1190.9    522172         438.5
3  India                   53.0       95.2       42.6       76.6        62.6       61.3      913.6    293606        321.4
3  Nepal                   16.1       16.1       16.8       16.8         0.7        0.8       20.9        4048      193.7
3  Pakistan                61.1       73.3       56.2       68.7        14.5       24.7      126.3      52011       411.8
3  Sri Lanka               26.1       29.2       23.7       26.1         3.8       11.2       17.9      11712       654.3
4  Indonesia               17.0       20.1       12.6       16.3         2.7        7.3      190.4    174640        917.2
4  Korea                   11.1       12.3       10.0       14.1         2.6       29.8       44.5    376505    8460.8
4  Malaysia                12.8       17.6       11.2       15.4         2.1        5.1       19.7      70626    3585.1
4  Papua N Guinea **        7.0       14.2        6.3       13.1         2.6        1.3        4.2        5403    1286.4
4  Philippines **          28.1       33.1       24.8       29.8        44.9       63.6       67.0      64162       957.6
4  Thailand                37.8       37.8       36.9       36.9         5.5        8.2       58.0    143209    2469.1
5  Romania **              16.7       16.7       13.6       13.6         0.0        0.1       22.7      30086    1325.4
5  Turkey                   9.0       24.7        9.0       22.1        96.4       89.7       60.8    131014    2154.8
5  Yugoslavia              11.8       12.0       10.8       11.0        29.2       33.6        4.8       14017    2920.2
6  Bahrain **               7.1        7.1        7.2         7.2        1.5        3.5         0.6       4548    7580.0
6  Iran **                 20.7      100.9       15.1       70.1        99.3       98.8       62.5      63716    1019.5
6  Jordan **               13.8       28.0       13.7       27.1        12.9       16.8        4.0        6105    1526.3
6  Oman **                  2.9        2.9        2.1         2.1        3.6        4.0        2.1      11628    5537.1
6  Saudi Arabia            12.1       12.1       12.0       12.1         3.9        8.0       17.8    117236    6586.3
6  Syria *                 14.8       27.5       12.6       24.5        36.6       36.2       13.8      35502    2572.6
6  Yemen *                 16.2       22.0       15.1       20.5        28.7       34.6       14.8       3884       262.4
7 Algeria                  22.9       24.9       16.4       18.9         9.5        6.9       27.4      41941    1530.7
7  Egypt                   33.5       33.5       22.9       22.9        45.2       49.9       56.8      42923       755.7
7  Libya **                18.3       34.7       20.7       36.5        10.3        9.4        5.2      20623    3966.0
7  Morocco **              23.5       36.1       22.1       34.6        27.6       39.7       26.4      30803    1166.8
7  Tunisia                 27.5       30.6       24.0       26.7        32.7       42.5        8.8      15770    1792.0
8  Argentina               10.6       19.4        9.7       16.6         0.2        3.1       34.2    281922    8243.3
8  Bolivia                 16.7       16.7       16.5       16.5         2.0        3.5        7.2        5506      764.7
8  Brazil                  13.2       15.4       14.7       16.7         1.5       14.3      159.1    554587    3485.8
8  Chile                   10.9       19.9       10.7       21.2         0.1        0.4       14.0      51957    3711.2
8  Colombia                11.8       11.8       11.7       11.7         1.7        2.3       36.3      67266    1853.1



54
8  Costa Rica **           21.1       61.7       16.4       37.2         0.8        4.1         3.3       8281    2509.4
8  Ecuador                  9.3       11.2        8.2       10.2        63.6       52.2       11.2       16556    1478.2
8  El Salvador**           21.1       21.1       15.8        15.8       19.2       10.7         5.6       8116    1449.3
8  Guatemala *             22.8       22.8       17.3        17.3        7.4       13.1       10.3       12929    1255.2
8  Guyana **               17.4       17.5       16.3       16.4        16.0       15.5        0.8         540      675.0
8  Haiti **                11.6       16.8       10.3       14.6        30.8       27.6        7.0        1632      233.1
8  Jamaica **              17.3       17.5       16.2       16.7         6.6       16.7        2.5        4241    1696.4
8  Mexico                  13.4       16.9       12.3       15.8         3.9       19.0       88.5    377115    4261.2
8 Nicaragua **             22.1       24.6       17.1       19.6        27.8       26.5        4.2        1833      436.4
8  Paraguay                15.4       15.4       12.9       12.9         1.8        4.6        4.8        7826    1630.4
8  Peru **                 48.9       66.3       39.4       56.1        53.4       55.5       23.2      50077    2158.5
8  Trinidad & To **        17.3       43.1       16.2       41.6        23.4       33.5        1.3        4792    3686.2
8  Uruguay **              27.5       28.5       26.6       27.6        14.1       20.6        3.2       15539    4855.9
8  Venezuela               16.4       17.4       14.6       16.2         2.4        2.8       21.2      58257    2748.0
9  Bahamas **              32.3       33.8       31.6       33.1         0.1        0.1        0.3        3375   11250.0
9  Cyprus *                17.5       23.5       13.9       19.9        32.2       47.5        0.7        7189   10270.0
9  Hong Kong                0.0        0.0        0.0         0.0        0.5        0.9        6.1    131881   21619.8
9  Kuwait                   4.2        4.2        4.2         4.2        3.5        6.7        1.6      24289   15180.6
9  Qatar *                  4.2        4.2        4.3         4.3        1.3        1.2        0.6        7661   12768.3
9  Singapore                0.4        0.4        1.9         1.9        0.3        0.7        2.9      68949   23775.5
9  Taiwan, China            9.7        9.7        7.4         7.4       35.9       27.4       21.0    241014   11476.9
9 United Arab Em.           4.5        4.5        4.3         4.3        1.0        0.5        2.4      35405   14752.1
Notes: /a Based on available MFN tariffs or applied rates.
/b Include additional fiscal and other import charges.
/c Countries with ** are the late 1980s tariffs, where country classifications are: l=Low income Afr
2 - Middle Income Africa, 3 = Low income Asia, 4 - Middle income Asia, 5 = Other Europe,
6 - Middle East, 7 = North Africa, 8 - Latin America, 9 - High Income Non-OECDs.
Sources: UNCTAD, Directory of Trade Regimes, 1994 and Handbook of Trade Control Measures of Developing
Countries, 1987; GATT/WTO, Trade Policy Review, various issues, 1990-95, and World Bank, WDR 1996.



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Table A.2: Trends in Average Tariff levels for 80 Developing Countries (Unweighted in %)
80 LDCs (Sources)             1980    1981    1982    1983    1984    1985    1986    1987    1988    1989    1990    1991    1992    1993    1994   1995    1996
1 Benin /b,p                                                              48.3    47.5    37.4              37.8    42.0    40.3    40.0    41.6                         13.1
1 Burundi /a                    37.9                                               37.0             36.9                                        7.4
1 Cote dl'voire /c,b,d,f,p   30.8    28.7    27.2    26.3    26.6    26.4    26.0    23.3    25.0    30.6    25.8                              23.6    22.0    20.0
1 Ethiopia /a                           29.0                                                        29.6                                                        16.3
1 Ghana /a,c,d                                   43.3    30.0    30.0    30.0    20.0    23.0    17.0    17.0    17.0    17.0                                   15.0    12.5
1 Guinea /a,p                   76.4                                                8.9                      8.2    13.0                       10.8
1 Kenya /b,c,d                                   40.3             41.7             39.2    39.2    41.7    37.5    43.7    34.0    33.6    22.0                          13.5
1 Madagascar /a,b                                                                   6.0              6.1                                                                  7.3
1 Malawi /a,b,d,p               21.9                              19.6    16.7    25.5    16.7    15.2    16.1    16.3                                 19.9    21.0    25.3
1 Mauritania /o,p                                                 23.6    25.5    23.1    19.0    19.2    17.0    33.0                                 31.4    20.3
1 Nigeria /a,c,d                                 32.6             35.0                     23.8             35.0    34.3    36.4               32.8             29.0
1 Rvanda /e                                                                                33.0                              42.0              34.8
1 Sierra Leone  /a,b                             25.8                              25.8    25.8    41.0                                                39.5    21.0
1 Somalia /b,o                          35.0                                       30.8             23.2
1 Sudan /a,o                    50.6                                               56.6                              43.0                              24.0
1 Tanzania /a.d                                  23.9                              32.1             29.8    28.2    29.7              33.0    27.5    27.5    19.5
1 Uganda /b,c.e                                                                    30.0    19.9                                                        17.1              13.2
1 Zaire /a.b,d                          23.6                      23.8             22.4    22.4             20.7    24.7                               34.1
1 Zi uabwe /a,c,h                                        10.0                       8.7      8.9            10.1                               17.2    17.2              21.8
2 Cameroon /b,c,p               28.3                                                        32.0                                               18.8    18.8              18.1
2 Mauritius /a,p                        34.9                      35.8    37.9    41.7    39.5              27.6                                        29.0    29.0
2 Senegal /c.h                                             5.0                     15.0    12.6    10.0    15.0    15.0                        12.3    12.6              12.6
2 South Africa /c,d                                               29.0                              22.0                              20.0    13.9                         8.8
3 Bangladesh /a,c,d                                      99.9                      81.8            102.2    94.0                      71.0    50.0    42.0               27.4
3 China /a,d                                     49.5                              38.1    39.5                      40.3             42.9    39.9    36.3               23.9
3 India /a,e,h                          74.3                                      100.0    98.8                      79.2             53.0    47.8    47.8               33.4
3 Nepal /a,e                                             22.1                              21.0    22.6                                        16.1             11.0
3 Pakistan /c,d,e,g                              77.6    77.0    77.0    77.0    66.0    68.9    69.0    65.0    64.8    66.0    61.1    56.0    51.0                    41.7
3 Sri Lanka /a,b,d                                       41.3             31.0             27.3    27.3              26.9             25.0    24.2    26.0    20.0
4  Indonesia /a,c,d             29.0                              37.0    27.0    31.5    18.1                       22.0    20.3    20.0    19.4    17.0                13.2
4  Korea /b,c                                    23.7    23.7    21.9                      22.9    18.1    12.7    11.4    11.4    10.1         8.9                        9.1
4 Malaysia /a,c,h                       10.6                                       15.8    13.6    13.0                               12.8    14.3    13.0                 9.1
4  Philippines /c               41.4    34.6    31.4    29.5    28.8    27.6    27.9    27.9    27.9    27.6    27.8    26.0    24.3    22.6    21.7    20.0    14.3
4 Thailand /c                            32.3                             41.2                               40.8             37.8                      23.3    23.1
S Czech Rep. /h,i,j                                                                 6.2      6.2                      5.3                       4.8      4.8
s Hungary /c,e,h                                                  24.0    24.0    15.0    15.0                                12.6              8.5      8.5
5 Poland /c,h                                                                      10.9    10.9             18.3              11.7    11.7      8.5      8.5
5 Romania /b,c                                                                     16.7                                       16.3    12.3                        6.0
5 Turkey /a,c,g                                          40.0    22.0    24.7    31.4    26.6    22.7                                           9.0             10.0
S Yugoslavia, PR /a,b,e         12.0                                       11.8    11.8    11.8              11.8
6 Bahrain /b,o                            1.7                                                        7.1              3.0                                                 4.0
6  Iran /a                      20.7                                                        20.7
6 Israel /c,m                                     8.0      9.4     7.5      6.9     7.1                                                         8.3      6.1
6 Jordan /m                     15.9    13.2    13.8    14.3    14.5    14.2    17.2    17.6    18.3    14.0    12.2    14.6    20.5                             16.0
6 Oman /b,o                               1.5                                       2.9              3.5              2.5                                5.7               6.0
6 Saudi Arabia /a,o              1.9      2.5                                                3.7     8.0    12.2                      12.1                       12.2    13.0
6 Syria /a,b,o                                   14.8                      14.8                     14.8             11.0                                                21.0



56
6 Yemen /b,o                           26.0                                              16.2                                                                       20.0
7 Algeria /a,o,p               44.4                             22.6    21.7    27.0    23.1    23.8    24.6                      22.9    24.8
7 Egypt /a,b,c                         47.4                                     42.8    42.8             33.5             42.2                     28.3    28.1
7 Libya /a,o                   13.3    15.4                                     18.3                             27.0
7 Morocco /a,c                                 54.0    36.0    33.0    27.0    23.0    20.8    24.0                                       22.8    24.4    25.7
7 Tunisia /a,c,p               23.8            26.4             27.8    27.2    24.5    24.0    26.0    27.1    27.4    27.7    27.5               33.2    30.0
8 Argentina /a,b,c,d,g                         28.0                     35.0    23.3    27.0    27.0    25.0    20.5    12.2    11.8    10.9               10.5    11.2
8 Bolivia /a,c                                                          12.1    20.0    20.0    19.0    17.0    16.0    10.0    10.0        9.8     9.8      9.7     9.7
8 Brazil /a,c                  44.0   49.0    48.0    48.0    49.0    51.0    51.0    51.0    41.0    35.0    32.2    25.3    21.2    14.2    10.7    11.8
8 Chile /a,c,d,g                                                35.0    20.0    20.0    20.0    15.0    15.0    15.0    11.0    11.0    11.0    11.0    11.0
8 Colombia /a,c,d,f,h                                           61.0            33.6    29.4    27.3    27.3    27.0    21.1    11.8    11.5    11.5    11.3    11.7
8 Costa Rica /d,e                                                       21.1    21.1    16.4                                      15.0    11.7    11.2    11.2
8 Ecuador /a,e                                                                  37.7    28.0             37.1                               9.3    11.9    12.3    11.4
8 El Salvador /b.e.h                                                            23.0    21.1             16.0                             13.1    10.1       9.2
8 Guatemala /b,e                                                                         22.8            16.0                                      10.8    10.1
8 Guyana /b,e                                                                   17.4                     20.0                                               17.0
8 Haiti /a                                     27.7                                      11.6                                                              10.0
8 Jamaica /b.h,k                                                        17.0    17.3    19.3             50.0             20.3             19.3    19.3
8 Mexico /a,c                                  27.0    24.0    23.0    25.2    22.6    11.3    11.3    13.1    11.1    13.1    13.4                13.5    13.1    12.6
8 Nicaragua /b,e                                                                         22.1                              8.0                     17.4    10.7
8 Paraguay /a,b                11.2                             10.9                             10.9                     15.9    15.4              8.0      9.3     9.4
8 Peru Ic                      19.0    17.0    21.0    31.0    42.0    46.0    46.0    45.0    46.0    42.0    26.0    17.0    18.0   16.3    16.3
8 Trinidad & Tobago /b,e                                                                         17.3    17.0             18.6    18.7                      18.7
8 Uruguay /b,c,h                       47.0                             38.0    40.0    29.1    27.5             23.0    21.5    18.2    17.0    14.7        9.9     9.7
8 Venezuela /a,b,d,l                                            28.0    28.0             32.9   32.9    30.6    19.0    16.0    16.4    15.7    11.8    13.4
9 Bahamas /a                   29.8                                     32.3                                                                                        32.0
9 Cyprus /a,m                                           17.1                             12.1    11.7    10.3    10.4    10.1                                       13.2
9 Hong Kong /a,c                0.0     0.0     0.0      0.0     0.0     0.0      0.0     0.0     0.0     0.0      0.0     0.0     0.0      0.0     0.0              0.0
9 Kuwait /a,o                           3.5                              3.9                      4.2
9 Qatar /b,o                            1.8                                      4.2                               5.0
9 Singapore /a,b,c                                       0.3                              0.3     0.3     0.4                               0.4     0.4              0.4
9 Taiwan /n                                    31.0    31.0    30.8    26.5    22.8    19.4    12.6       9.7      9.7                             11.2
9 United Arab Emirates /b,o             1.2                                      4.5                                                                                 4.0
Notes: -- All tariff rates are based on unweighted averages for all goods in ad valorem rates, applied rates,
or MFN rates whichever data are available in a longer period.
-- Most tariff levels exclude para-tariffs or surcharges, except Cyprus, Israel, Jordan,
Madagascar, Peru, Trinidad & Tobago, and Tunisia,
Sources: /a UNCTAD, Directory of Import Regimes: Part I -- Monitoring Import regimes, 1994.
/b UNCTAD, Handbook of Trade Control Measures of Developing Countries, Supplement, 1987.
/c GATT/WTO, Trade Policy Review--Country Report, Various Issues, 1989-96.
/d Dean, Desai, and Riedel, Trade Policy reform in Developing Countries Since 1985: A Review
of the Evidence, World Bank Discussion Papers #267, 1994.
/e Pritchett and Sethi, Tariff Rates: What Do We Know? Why Do We Care?, World Bank mimeo, 1993.
/f World Bank, World Bank Support for Trade Policy Reform, OED Report No. 9527, 1991.
/g World Bank, Strengthening Trade Policy Reform, Vol. II, Report No. SecM89-1454/1, 1989.



57
/h Finger & Reincke, Country Tables, World Bank IECIT draft, 1995.
/i World Bank, Czechoslovakia--Integrating into the Global Economy: A Transition Strategy,
UNDP-WBTEP, Country Report #8, 1992.
/j World Bank, Czechoslovakia: Transition to a Market Economy, Report No. 8847-CZ, 1990.
/k World Bank, Jamaica: A Strategy for Growth and Poverty Reduction, CEM, Report No.
12702-JM, 1994.
/1 World Bank, Venezuela: Structural and Macroeconomic Reforms -- The New Regime,
Report No. 10404-VE, 1993.
/m IMF, Government Finance Statistics Yearbook and International Financial Statistics Yearbook,
Various issues, 1990-94.
/n Chen and Nou, "The Political Economy of Trade Protection in Taiwan", Chapter 12,
Trade and Protectionism, edited by Ito and Krueger, The University of Chicago Press, 1993.
/o Jamal Zarrouk, *Intra-Arab Trade: Determinants and Prospects", Chepter 7, Foreign and
and Intratrade Policies of the Arab Countries, edited by Said El-Naggar, IMF, 1992.



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Table A.3: Average Tariff Levels and Total Import Charges by Primary Products for 80 Developing Countries
(unweighted in %)
All Primary             Food         Agric Raw Matl       Mineral Ores        Mineral Fuels    Non Fer. Metals
80 LDCs             Tariff    Total   Tariff    Total   Tariff    Total   Tariff    Total   Tariff    Total   Tariff    Total
1  Benin **              35.0      46.8     36.7      48.4      33.4      45.3      35.9      47.8     19.1      30.4      39.8      51.8
1 Burkina Faso           68.6      84.7     83.3    100.6       49.8      65.5      60.8      76.9     53.2      63.3      63.5      80.0
1  Burundi               50.5      51.5     75.1      76.1      35.4      36.4      23.3      24.3     16.2      17.2      25.9      26.9
1 Centr Afr Rep **    28.9         33.9     26.1      32.4      34.0      36.1      27.3      30.0     23.7      26.2      35.6      45.6
1 Cote d'Ivoire **    18.8         19.7     23.2      24.0       9.3      10.6      18.0      18.9     17.5      18.6      20.9      21.5
1 Ethiopia               26.8      28.5     39.8      41.4      16.5      18.2      13.6      15.3       5.3      7.0      18.8      20.5
1 Ghana **               28.1      32.4     26.0      26.0      30.0      48.0      29.7      29.7     29.9      29.9      30.0      30.0
1 Guinea *                9.2       9.2       9.0      9.0      10.0      10.0       9.5       9.5     10.0      10.0       7.9       7.9
1  Kenya                 46.3      47.3     64.6      65.6      33.2      34.2      27.7      28.7     21.6      22.6      29.3      30.3
1 Madagascar              3.7      38.9      6.8      51.1       0.9      36.2       0.4      19.9       0.1     26.4       2.6      22.2
1 Malawi                 10.6      10.6     17.8      17.8       3.9       3.9       0.3       0.3       2.9       2.9       9.6      9.6
1 Mozambique **          16.3      26.3     19.3      29.3      16.2      26.2       9.5      19.5      13.2     23.2      11.9      21.9
1 Nigeria                29.0      36.0     35.6      42.6      25.0      32.0      16.9      23.9     16.1      23.1      30.3      37.3
1  Sierra Leone *        19.4      19.4     18.2      18.2      26.8      26.8      12.6      12.6     18.7      18.7      17.5      17.5
1 Somalia **             29.8      30.6     46.0      47.5      27.2      27.4       3.0       3.0       9.7      9.7      10.4      10.4
1 Sudan **               56.6      56.6     70.9      70.9      50.3      50.3      38.3      38.3     25.4      25.4      54.2      54.2
1 Tanzania               33.9      33.9     44.4      44.4      29.6      29.6      22.5      22.5     11.5      11.5      25.0      25.0
1 Uganda **              25.2      25.2     35.9      35.9      20.5      20.5      12.0      12.0     14.8      14.8      10.6      10.6
1  Zaire                 20.7      20.7     27.6      27.6      15.9      15.9      14.2      14.2     10.5      10.5      17.5      17.5
1  Zambia *              31.9      31.9     44.7      44.7      25.1      25.1      17.5      17.5     21.7      21.7      16.1      16.1
1  Zimbabwe               5.6      25.7     10.4      30.8       1.4      21.4       0.2      20.2       5.1     25.1       1.2      21.2
2  Angola **             10.6      19.6      14.1     23.1       8.2      17.2       9.4      18.4       7.0     16.0       2.0      11.0
2  Cameroon **           28.9      34.7     26.1      31.2      34.0      39.0      27.3      30.1     23.7      31.0      35.6      48.3
2  Congo **              28.9      29.5     26.1      26.9      34.0      34.1      27.3      27.3     23.7      26.4      35.6      35.6
2  Mauritius             16.6      51.7     27.7      65.8       5.8      38.7       1.5      33.9     25.7      54.9       4.8      38.8
2  Senegal **            38.9      38.9     43.9      43.9      33.4      33.4      36.4      36.4     31.3      31.3      36.9      36.9
3  Bangladesh            73.3      75.3     83.2      85.2      74.2      76.2      45.2      47.2     55.1      57.1      74.3      76.3
3  China                 31.7      31.7     44.8      44.8      26.0      26.0      15.6      15.6     15.8      15.8      15.8      15.8
3  India                 44.9      83.8     45.1      85.4      42.6      80.5      49.9      88.9     26.1      50.1      55.6    100.2
3  Nepal                  8.9       8.9      12.6     12.6       4.0       4.0       3.6       3.6       6.6      6.6      11.1      11.1
3  Pakistan              54.1      65.7     69.9      81.2      34.6      46.1      38.5      49.3     47.6      58.5      45.9      60.1
3  Sri Lanka             26.7      29.9     41.3      47.1      17.0      18.8      13.2      14.1     13.4      13.7      11.4      11.6
4  Indonesia             13.6      17.1      20.8     25.2       8.9      11.4       4.3       6.8       4.9       7.9      9.0      11.7
4  Korea                 12.9      14.5      20.9     21.7       6.5       6.5       3.2       4.3       5.5     20.2       8.3       8.3
4  Malaysia               7.3       8.7       9.4     11.5       6.6       7.3       3.5       3.8       5.0       5.6      7.2        9.5
4  Papua N Guinea *       4.5      11.8       3.3     10.2       8.4      15.9       2.1       9.6       0.8       8.3      5.7      13.2
4  Philippines **        26.9      31.9      35.8     40.8      22.7      27.7      12.6      17.6      16.0     21.0      21.4      26.4
4  Thailand              26.2      26.2     38.1      38.1      26.8      26.8      14.3      14.3     24.1      24.1      19.7      19.7
5  Romania **            13.8      13.8     23.4      23.4       8.3       8.3       4.3       4.3       3.8      3.8       1.5       1.5
5  Turkey                 8.2      25.2      11.8     38.5       4.4      17.5       4.1      15.5       4.6     20.8       7.3      15.0



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5 Yugoslavia             7.0      7.2      8.1       8.6      5.9       5.9      4.5      4.5       5.6      5.6       8.3      8.3
6 Bahrain **             7.5      7.6     10.2      10.4      5.3       5.3      4.8      4.8       5.0      5.0       5.3      5.3
6 Iran **               16.8     81.5     21.4    119.3      16.7      57.2     10.0     41.5       7.9     27.5      10.2     51.8
6 Jordan *               7.2     19.6     11.2      25.2      2.9      13.2      3.8     14.1       4.8     16.1       5.9     19.9
6 Oman **                2.0      2.0      2.2       2.2      1.9       1.9      1.9       1.9      1.4      1.4       2.0      2.0
6 Saudi Arabia          12.0     12.0     11.9      11.9     12.0      12.0     12.1     12.1      12.3     12.3      11.8     11.8
6 Syria **              13.1     25.1     20.4      34.8      7.7      17.7      5.9     15.5       8.8     19.7       6.2     16.2
6 Yemen *               17.9     25.0     26.4      34.5     10.2      16.9      9.5     16.7      14.0     22.3       9.4     12.8
7 Algeria               18.6     20.8     29.1      31.9      9.8      12.7      8.3       9.6      3.2      4.7      13.6     14.6
7 Egypt                 50.4     50.4     98.6      98.6      9.9       9.9      8.0       8.0      7.4      7.4      11.5     11.5
7 Libya                 14.2     29.5     17.2      31.5     15.4      31.9      9.3     25.2       9.1     25.0       8.2     24.0
7 Morocco **            18.2     30.9     27.7      40.2      9.5      22.8      8.4     20.9      10.3     22.8      11.9     24.4
7 Tunisia               25.7     28.7     32.6      36.2     19.7      22.1     19.5     22.2      13.5     15.5      23.9     26.6
8 Argentina              5.2     14.0      5.0      17.6      6.5      16.5      3.3      10.5      0.3       1.7      8.9     18.5
8 Bolivia               17.0     17.0     17.0      17.0     17.0      17.0     17.0      17.0     17.0     17.0      17.0     17.0
8 Brazil                 7.2      9.4     11.1      13.3      5.9       8.1      0.2       2.4      1.1      3.3       5.4       7.6
8 Chile                 11.0     20.5     11.0      20.9     11.0      19.9     11.0      19.7     11.0     19.0      11.0     21.8
8 Colombia              11.3     11.3     15.4      15.4      9.0       9.0      5.3       5.3      7.5      7.5       7.7       7.7
8 Costa Rica **         20.4     64.3     33.4      80.0      9.8      43.2      6.7      90.3     12.6     64.0       7.0       7.0
8 Ecuador                8.5     10.5     12.7      14.7      5.9       7.9      2.5       4.5      4.7      6.7       4.6       6.6
8 El Salvador *         19.9     19.9     32.9      32.9      9.8       9.8      6.6       6.6      9.5      9.5       7.0       7.0
8 Guatemala **          20.9     20.9     33.3      33.3      9.8       9.8      6.6       6.6      9.2      9.2       7.0      7.0
8 Guyana *              11.6     11.7     18.9      19.0      4.2       4.3      4.3      4.4      10.3     10.4       6.9       7.0
8 Haiti **              14.5     19.8     21.6      26.4      8.5      15.3      7.2     12.8       4.9      5.1      11.4     17.7
8 Jamaica **            11.6     11.8     18.9      19.2      4.2       4.6      4.3      4.3      10.3     10.3       6.9       6.9
8 Mexico                11.8     15.3     14.3      17.8      9.9      13.3      8.6      12.0      9.1     12.5      10.8     14.3
8 Nicaragua *           20.3     22.7     33.4      35.9      9.8      12.3      6.6       9.1     10.6     12.9       6.8       9.3
8 Paraguay              14.7     14.7     20.3      20.3     16.8      16.8      4.1       4.1      2.1      2.1       6.9       6.9
8 Peru **               36.1     53.2     42.7      59.3     37.8      55.3     17.8      35.3     18.7     35.6      37.9     55.4
8 Trinidad & Tob. *   11.6       34.2     18.9      36.2      4.2      31.1      4.3      31.3     10.3     37.3       6.9     33.9
8 Uruguay **            25.6     26.6     30.3      31.3     21.9      22.9     18.3      19.3     29.8     30.8      19.1     20.1
8 Venezuela             14.3     15.3     19.2      20.2     12.0      13.0      7.4       8.4      7.8      8.8       9.1      10.1
9 Bahamas **            30.3     31.8     27.0      28.5     32.9      34.4     32.9      34.4     31.2     32.7      34.4     35.9
9 Cyprus **             10.3     16.3     16.5      22.5      7.9      13.9      1.9       7.9      1.0       7.0      6.1      12.1
9 Hong Kong              0.0      0.0       0.0      0.0      0.0       0.0      0.0       0.0      0.0       0.0      0.0       0.0
9 Kuwait                 2.9      2.9       1.5      1.5      3.9       3.9      4.1       4.1      4.4      4.4       3.8       3.8
9 Qatar **               4.9      4.9      5.9       5.9      4.0       4.0      4.0       4.0      4.0      4.0       3.9       3.9
9 Singapore              0.3      0.3      0.1       0.1      0.0       0.0      0.0       0.0      3.4       3.4      0.0       0.0
9 Taiwan, China          6.1      6.1      7.5       7.5      3.0       3.0      0.5       0.5      2.5      2.5       2.8       2.8
*9 United Arab Em. *    3.2        3.2       0.8      0.8      5.6       5.6      4.9       4.9      5.8       5.8      5.2       5.2
Sources: UNCTAD, Directory of Trade Regimes, 1994 and Handbook of Trade Control MEasures of Developing Countries, 1987.



60
Table A.4s Average Tariff Levels and Total Zuport Charges by Manufactured Product for 80 Developing Countries
(Veweighted in 9)
All Manuf.          Chemicals         Iron & Steel          Mach & Equip.       Other Manuf.    All Products
80 LDCs                Tariff    Total   Tariff    Total   Tariff    Total   Tariff    Total   Tariff    Total  Tariff   Total
1  Benin *                  38.3      50.3      35.8      47.7      40.0      52.0      21.2      32.6      47.8       60.1    37.4    49.4
1  Burkina Faso **          57.9      73.8      61.8      77.6      58.8      75.1      48.4      63.7      60.8       77.1    60.8    76.8
1  Burundi                  31.6      32.6      22.4      23.4      19.5      20.5      21.5      22.5      42.2       43.2    36.9    37.9
1  Centr Afr Rep *          33.0      41.2      29.1      32.3      29.0      32.6      25.1      34.2      39.2       49.6    32.0    39.3
1  Cote d'Ivoire            25.0      27.4      20.7      22.0      20.6      21.2      16.4      17.1      31.8       35.8    23.3    25.3
1  Ethiopia                 30.6      32.2      15.5      17.0       5.7       7.1      14.3      15.9      47.2       48.9    29.6    31.2
1 Ghana *                   30.1      33.3      29.7      29.7      30.0      30.0      30.7      30.7      30.1       36.5    29.6    33.0
1  Guinea *                  8.8       8.8       9.4       9.4      10.0      10.0       7.0        7.0       9.2       9.2      8.9      8.9
1  Kenya                    42.9      43.9      30.5      31.5      23.8      24.8      25.9      26.9      59.4       60.4    43.7    44.7
1 Madagascar                 7.0      40.5       0.8      30.1       4.2      22.0       7.5      32.2        9.8      51.5      6.1    40.1
1 Malawi                    16.9      16.9       9.7       9.7       9.3       9.3      15.0      15.0      22.1       22.1    15.2    15.2
1 Mozambique **             15.3      25.3      10.3      20.3      19.6      29.6       9.6      19.6      21.8       31.8    15.6    25.6
1  Nigeria                  34.2      41.2      22.2      29.2      19.8      26.8      20.1      27.1      48.3       55.3    32.8    39.8
1  Sierra Leone *           28.0      28.0      23.6      23.6      13.9      13.9      21.4      21.4      35.0       35.0    25.8    25.8
1  Somalia *                31.0      31.1      18.7      18.7       9.3       9.3      20.5      20.5      44.4       44.4    30.8    31.0
1  Sudan **                 56.4      56.4      31.4      31.4      53.5      53.5      42.1      42.1      75.1       75.1    56.6    56.6
1  Tanzania                 28.3      28.3      22.2      22.2      24.0      24.0      20.7      20.7      35.4       35.4    29.8    29.8
1 Uganda **                 17.9      17.9      12.3      12.3      14.0      14.0      10.7      10.7      24.6       24.6    19.9    19.9
1  Zaire                    20.7      20.7      11.6      11.6      13.2      13.2      14.2      14.2      29.1       29.1    20.7    20.7
1  Zambia **                29.1      29.1      20.3      20.3      16.2      16.2      19.6      19.6      39.3       39.3    29.9    29.9
1  Zimbabwe                 11.8      31.8       3.7      23.7       6.1      26.1       7.6      27.6      18.2       38.2    10.1    30.1
2  Angola **                11.9      20.8       9.2      17.9       8.3      17.3       6.6      15.6       19.7      28.7    11.6    20.6
2  Cameroon                 33.1      44.9      29.1      35.1      29.0      41.8      25.5      39.4       39.2      52.4    32.0    42.2
2  Congo **                 33.0      34.4      29.1      30.1      29.0      29.3      25.1      26.3       39.2      41.1    32.0    33.2
2  Mauritius                31.6      63.4      13.6      44.7      10.4      44.4      31.5      65.0       42.2      73.1    27.6    60.3
2  Senegal **               32.3      32.3      11.0      11.0      36.9      36.9      28.5      28.5       43.1      43.2    34.2    34.2
3  Bangladesh               84.5      86.5      71.7      73.7      82.2      84.2      75.2      77.2       95.2      97.2    81.2    83.2
3  China                    39.7      39.7      25.2      25.2      13.7      13.7      30.0      30.0       54.1      54.1    37.5    37.5
3  India                    56.1      99.4      60.5    104.8       56.9    101.2       43.9      87.6       60.2    102.8    53.0    95.2
3  Nepal                    18.5      18.5       9.6       9.6      12.4      12.4      17.6       17.6      23.7      23.7    16.1    16.1
3  Pakistan                 63.6      76.1      53.8      65.8      66.3      78.4      44.1      58.8       77.4      89.1    61.1    73.3
3  Sri Lanka                26.0      29.1      13.2      14.1      11.7      12.0      15.6       16.6      38.7      44.0    26.1    29.2
4  Indonesia                18.3      21.4      10.3      13.2       7.5      11.9      14.5       17.9      25.2      27.9    17.0    20.1
4  Korea                    10.5      11.5      10.4      10.4       9.0       9.0      10.2       12.1      10.9      12.0    11.1    12.3
4  Malaysia                 14.7      20.8       9.3      11.5       7.3       7.9      10.0       16.0      20.2      28.5    12.8    17.6
4  Papua N Guinea *          7.7      14.8       4.6      11.9       0.2       7.7       4.6       11.9      11.6      18.5      7.0    14.2
4  Philippines **           28.5      33.5      18.4      23.4      14.3      19.3      23.7       28.7      37.1      42.1    28.1    33.1
4  Thailand                 41.8      41.8      29.9      29.9      19.6      19.6      35.3       35.3      52.5      52.5    37.8    37.8
5  Romania                  18.0      18.0       9.8       9.8       3.6       3.6      16.9       16.9      23.8      23.8    16.7    16.7
5  Turkey                    9.3      24.6       8.2      24.1       6.9      12.7       8.0       17.8      10.8      29.9      9.0    24.7
5  Yugoslavia               13.7      13.8       9.5       9.6      12.7      12.7      13.7       13.7      15.6      15.9    11.8    12.0



61
6 Bahrain **                7.0       7.0       4.8      4.8       5.0       5.0       8.4       8.4       7.5       7.5      7i1     7.1
6  Iran **                 22.2    108.2      15.4      44.4      11.9      37.8      12.3     54.7      31.3    171.2    20.7   100.9
6 Jordan **                16.2      31.1       8.0     21.5       6.4      21.7      13.6     26.4      22.3      38.8    13.8    28.0
6 Oman **                   3.3       3.3       7.8      7.8       2.0       2.0       2.0       2.0       2.1       2.1     2.9      2.9
6 Saudi Arabia             12.2      12.2     11.9      11.9      13.2      13.2      11.8     11.8       12.4     12.4    12.1    12.1
6 Syria *                  15.5      28.5       7.3     17.6       3.8      12.6      11.5      23.1      22.7     38.1    14.8    27.5
6 Yemen **                 15.6      20.9     10.0      18.2      12.1      15.3      12.0      15.4     20.4      25.5    16.2    22.0
7 Algeria                  24.6      26.6     14.2      15.3      12.3      13.3      16.3      18.6      34.9     37.1    22.9    24.9
7 Egypt                    27.1      27.1      10.2     10.2       9.8       9.8      18.1      18.1      40.2     40.2    33.5    33.5
7 Libya **                 19.7      36.5       6.8     22.3       1.7      16.8      19.4      36.1      27.7     45.4    18.3    34.7
7 Morocco **               25.6      38.2      18.7     31.2       8.3      20.8      20.8      33.3      33.2     45.9    23.5    36.1
7 Tunisia                  28.2      31.3     23.1      25.6      18.5      20.8      24.2      26.9      33.7      37.4    27.5    30.6
8 Argentina                12.7      21.5       7.7     15.6      10.1      20.2      14.5      20.0      14.4      25.0    10.6    19.4
8 Bolivia                  16.5      16.5     17.0      17.0      16.8      16.8      15.2      15.2      17.0      17.0    16.7    16.7
8 Brazil                   15.6      17.8      10.8     13.0      11.0      13.2      19.4      21.6      16.3      18.5    13.2    15.4
8 Chile                    10.9      19.7      11.0     19.2      11.0      19.0      10.7      19.2      11.0      20.3    10.9    19.9
8 Colombia                 12.0      12.0       8.7       8.7      8.3       8.3       9.6       9.6      15.2      15.2    11.8    11.8
8 Costa Rica **            21.5      60.9      10.7     12.1       7.4      15.4      10.8      14.0      33.2    111.2    21.1    61.7
8 Ecuador                   9.5      11.5       6.1       8.1      4.7       6.7       6.4       8.4      13.3      15.3      9.3    11.2
8 El Salvador *            21.5      21.5     10.6      10.6       7.4       7.4      10.3      10.3      33.6      33.6    21.1    21.1
8 Guatemala **             23.5      23.5     10.6      10.6       7.4       7.4      11.0      11.0      37.4      37.4    22.8    22.8
8 Guyana *                 19.4      19.5       7.5       7.6      9.2       9.3      15.5      15.6      27.8      27.9    17.4    17.5
8 Haiti **                 10.5      15.6       7.9     10.4       5.9      11.9       6.7      12.1      14.0      20.2    11.6    16.8
8 Jamaica **               19.3      19.4       7.5      7.5       9.2       9.2      15.1      15.5      27.8      27.9    17.3    17.5
8 Mexico                   13.9      17.5      11.2     14.6      10.2      13.6      13.6      17.1      15.8      19.4    13.4    16.9
8 Nicaragua                22.9      25.3      10.6     13.1       7.3       9.8      10.8      13.3      36.1      38.6    22.1    24.6
8  Paraguay                15.5      15.5       5.8       5.8      8.6       8.6      11.9      11.9      22.4      22.4    15.4    15.4
8  Peru **                 54.0      71.5     38.5      55.6      29.7      46.3      42.9      60.4      69.3      87.1    48.9    66.3
8 Trinidad & To *          19.3      46.2       7.5     34.2       9.2      36.2      15.1      42.1      27.8      54.8    17.3    43.1
8 Uruguay **               28.2      29.2     20.7      21.7      20.1      21.1      23.0      24.0      35.2      36.2    27.5    28.5
8 Venezuela                17.2      18.2      10.5     11.5       7.9       8.9      12.3      13.4      23.7      24.7    16.4    17.4
9 Bahamas **               33.1      34.6     31.9      33.4      35.0      36.5      35.3      36.8      32.3      33.8    32.3    33.8
9 Cyprus *                 20.3      26.3       8.6     14.6       3.1       9.1      11.7      17.7      30.9      36.9    17.5    23.5
9 Hong Kong                 0.0       0.0       0.0       0.0      0.0       0.0       0.0       0.0       0.0       0.0      0.0     0.0
9  Kuwait                   4.7       4.7       5.2       5.2      4.1       4.1       4.1       4.1       4.8       4.8      4.2     4.2
9 Qatar *                   4.0       4.0       4.1      4.1       4.0       4.0       4.1       4.1       3.9       3.9      4.2     4.2
9 Singapore                 0.4       0.4       0.0       0.0      0.0       0.0       0.4       0.4       0.7       0.7      0.4     0.4
9 Taiwan, China            10.7      10.7       5.2      5.2       7.3       7.3       8.8       8.8       5.0       5.0      9.7     9.7
9 United Arab Em. **        4.9       4.9       4.4       4.4      5.0       5.0       5.0       5.0       5.5       5.5      4.5     4.5
Sources: UNCTAD, Directory of Trade Regimes, 1994 and Handbook of Trade Control Measures of Developing Countries, 1987.



62
Table A.5s 8ewtoral Axerage-  of Non-Tariff Mueaures Coverage Ratio /a  in S0 Developing Countries
(Unmeighted in %)
All         Agr Raw    Min.   Min. Non Per    All  Chem-  Iron & Mach &   Other           All
80 LDCs /b       Primary    Food  Matl.   Ores   Fuels Metals  Manuf  icals   Steel Bquip.  Manuf  Goods
1 Benin **            24.3    41.4    12.3      0.0    30.6     0.0    14.2      6.2     0.0    26.4    13.2    17.0
1 Burkina Paso        48.6    32.5    69.5    23.9    97.2    73.6    93.2    94.7   100.0    96.6    90.1    80.6
1 Burundi              0.2      0.4     0.0     0.0     0.0     0.0      0.4     0.0     0.0     0.3      0.6     0.3
1 Centr Afr Rep **    9.3   12.7        1.3     0.7    41.7     0.0      3.1     2.8     0.9     0.6      4.8     5.1
1 Cote d'Ivoire **   12.5    21.1       1.0     4.5    25.0     0.0      4.4     6.7     0.8     6.1      3.0     6.6
1 Ethiopia            42.9    69.7    35.2    11.2      1.4     7.5    14.7      0.9     1.8     7.2    26.1    22.5
1 Ghana *-            63.9    76.8    64.5    69.4    19.4    28.3    42.0    14.6    52.7    19.2    64.4    48.4
1 Guinea  4t 46.9    76.5    38.6               2.2     1.4    19.3    35.1      6.7    25.3    37.8    47.5    38.2
1 Kenya               37.0    68.3    14.7      7.5     2.8     5.2    38.3      5.4    24.4    16.1    65.8    37.8
1 Madagascar           0.8      0.0     0.0     1.5     0.0     5.9      1.6     1.4     0.0     0.9      2.1     1.7
1 Malawi              84.8    76.1    99.6    84.3    74.3   100.0    93.8    86.3    87.3   100.0    94.7    91.3
1 Mozambique *        42.2    25.9    48.2    35.1    58.3   100.0    62.7    69.1   100.0    43.7    65.1    56.9
1 Nigeria             22.7    38.9    17.5      1.5     0.0     0.0      3.1     0.5     0.0     0.0      6.2     8.8
1 Sierra Leone *-   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0
1 Somalia *-          13.6      6.7     0.0    47.8    38.9    13.2      2.8     5.0     0.0     1.4      2.9     6.3
1 Sudan *-            12.0    25.1      0.0     0.7     0.0     0.9      9.4     3.3     0.0     3.8    15.9    10.0
1 Tanzania            64.3    65.7    62.3    57.5    63.6    71.7    85.9    96.7    97.3    77.5    83.9    79.7
1 Uganda *'           13.8    26.1      0.0     0.0     0.0    15.1    14.1      0.0     3.3    38.2      9.4    13.9
1 Zaire              100.0  100.0  100.0  100.0  100.0  100.0  100.0  100.0  100.0  100.0   100.0  100.0
1 Zambia **            0.0      0.0     0.0     0.0     0.0     0.0      0.0     0.0     0.0     0.0      0.0     0.0
1 Zimbabwe            99.7   100.0   99.9   100.0    98.8    98.1    91.2    94.5   100.0    97.5    85.5    93.6
2 Angola **            0.0      0.0     0.0     0.0     0.0      0.0     0.9     1.4     0.0     0.5      1.1     0.7
2 Cameroon ii         13.2      8.1    37.7     5.5     0.0     1.9    23.4    10.1      4.4     8.1    39.3    20.7
2 Congo **             2.8      5.0     0.9     2.2     0.0     0.0      4.9     4.2     1.8     2.4      6.8     4.6
2 Mauritius           30.8    42.0    12.3    16.4    12.9    50.0    36.9    17.8    53.5    46.1    38.8    35.2
2 Senegal *-           8.4    13.1      2.3     3.0    16.7     1.9      6.1     8.2    10.7     3.1      6.2     7.2
3 Bangladesh  *-      55.2    73.9    52.3    20.3    66.7    13.6    46.8    30.7    39.3    30.7    63.0    49.4
3 China               11.5      3.4    38.4     3.2    12.3     0.2    11.3      3.1    74.6     9.9      8.1    11.3
3 India               71.7    88.4    47.6    68.3    85.3    43.7    58.9    53.3    50.6    36.3    73.8    62.6
3 Nepal                1.0      0.0     0.0     2.2     0.0     6.6      0.5     0.0     0.0     0.3      0.8     0.7
3 Pakistan             6.8     8.6      3.3     3.0    22.1     0.0    17.3    13.6      0.0     4.1    27.6    14.5
3 Sri Lanka            2.8     4.5      0.0     4.0     0.0     1.9     4.0    10.6      0.0     5.8      0.6     3.8
4 Indonesia            4.6      8.7     0.0     1.0     4.2     0.8      2.0     1.4    16.1     2.3      0.4     2.7
4 Korea                9.0    17.6      1.8     0.7     2.8     0.0      0.2     0.2     0.0     0.0      0.3     2.6
4 Malaysia             1.2     2.0      0.0     2.2     0.0     0.0      2.4     3.6     8.5     2.2      1.2     2.1
4 Papua N Guinea *-   9.4    20.0       0.0     0.0     0.0     0.0      0.0     0.0     0.0     0.0      0.0     2.6
4 Philippines ii      40.5    60.0   24.2    12.7    75.0       0.0    46.3    47.7    20.1    87.6    28.0    44.9
4 Thailand             8.8    12.7      3.8     7.8     8.3     3.6      4.2     0.9     0.6     3.6      6.3     5.5
5 Romania **           0.0      0.0     0.0     0.0     0.0     0.0      0.0     0.0     0.0     0.0      0.0     0.0
5 Turkey              93.9    92.2    99.3    98.5    70.6   100.0    97.3    92.3   100.0    99.1    98.3    96.4
5 Yugoslavia          36.6    39.8    39.4    21.8    25.3    42.9    25.9    10.9    81.9    21.5    28.2    29.2
6 Bahrain ii           2.0     3.9      0.8     0.0     0.0     0.0      1.3     2.0     0.0     3.5      0.0     1.5
6 Iran *t             99.0    97.9  100.0  100.0  100.0  100.0   99.4    97.2   100.0   100.0   100.0    99.3
6 Jordan ii           37.0    77.3      0.9     4.5     0.0     0.0      3.6     9.8     0.0     2.2      2.1    12.9
6 Oman *-              2.2     2.9      0.9     4.5     0.0     0.0      3.8     7.8     0.0     3.3      2.8     3.6
6 Saudi Arabia         4.4     8.9      0.8     0.0     0.0     0.0      3.4     5.6     4.0     5.0      1.4     3.9
6 Syria ii            30.7   44.4    31.1    14.9    11.8       1.1    38.7    32.1    25.3    28.9    48.3    36.6
6 Yemen **            25.2    19.8    38.9      2.6    97.2     0.0    30.2      0.9     0.0    45.2    39.4    28.7
7 Algeria             26.8    57.2      0.0     0.0     0.0     0.0     2.8      1.2     0.0     0.2     5.2      9.5
7 Egypt               43.8    70.1    10.5    10.4    78.6    16.4    45.6    55.9    17.3    29.5    52.5    45.2
7 Libya ii            15.0    29.2      4.8     2.2     0.0     0.0      8.4     1.6     1.3     6.7    13.2    10.3
7 Morocco **          43.0   73.9    13.6       4.5    65.0     0.9    21.8    13.0      3.1    11.8    33.0    27.6
7 Tunisia             37.3   62.3       9.4    17.1    26.7    17.4    30.5    14.5      8.5    18.8    46.1    32.7
8 Argentina            0.1      0.0     0.5     0.0     0.0     0.0      0.3     0.1     0.0     1.0      0.0     0.2
8 Bolivia              1.6      3.4     0.0     0.0     0.0     0.0      1.8     2.9     0.0     3.4      0.7     2.0
8 Brazil               4.1      0.5     0.5     1.6    47.3     1.9      0.4     2.1     0.0     0.0      0.0     1.5
8 Chile                0.3      0.6     0.0     0.0     0.0     0.0      0.0     0.0     0.0     0.0      0.0     0.1
8 Colombia             1.0      1.2     1.9     0.0     0.0     0.0      1.6     5.5     0.0     0.3      0.7     1.7
8 Costa Rica ii        0.0      0.0     0.0     0.0     0.0     0.0      1.0     0.0     0.0     4.1      0.0     0.8
8 Ecuador             67.5    91.4   54.1    19.2    84.6    38.7    61.8    42.1    27.1    39.9   85.7    63.6
8 El Salvador '*      17.7    33.9      0.9     3.0     0.0    11.3    19.7      0.7     0.8    10.3    35.1    19.2
8 Guatemala ii        12.5    20.6      9.2     6.0     0.0     0.0     5.0    13.3      0.0     4.2     2.2      7.4
8 Guyana **           18.0    37.6      0.0     3.0     0.0     0.0    15.3    53.2    18.7      1.8     4.9    16.0
8 Haiti **            34.5    51.3    39.5      0.7    16.7     2.8    29.7      8.9     6.7    24.7    44.1    30.8
8 Jamaica *-          10.3    20.3      1.9     3.0     0.0     0.0     4.8    13.4      0.0     5.6     1.1      6.6



63
8 Mexico               8.5    12.9      6.1     0.0   15.6       0.0     1.8     1.1   13.1      1.4      1.0     3.9
8 Nicaragua **        25.6    52.2      3.5     0.7     1.4     1.9   28.5       7.0     2.0    16.1   47.5    27.8
8 Paraguay             6.4    12.5      2.2     0.0     0.0     0.0      0.0     0.0     0.0     0.1      0.0     1.8
8 Peru **             73.0    99.9   67.4   20.9   38.9   52.8   45.8   24.9  100.0   14.4   64.6   53.4
8 Trinidad & Tob. * 30 8    61.6        0.0     2.1    20.8      2.2   20.5      5.9    10.0   13.4   31.9   23.4
8 Uruguay **          10.0      3.8     3.9     5.0   94.4       0.2    15.5    16.7     2.2      3.5   22.7   14.1
8 Venezuela            3.0      3.6     1.0     1.5     9.7     1.9      1.7     6.1     0.0      0.3     0.7    2.4
9 Bahamas **           0.0      0.0     0.0     0.0     0.0      0.0     0.1     0.0     0.0      0.0     0.2     0.1
9 Cyprus **           40.8    68.4    15.8      9.0   48.1       5.7   28.6    30.3    23.3    47.0    19.3    32.2
9 Hong Kong            0.8      1.7     0.0     0.0     0.0      0.0     0.3     1.4     0.5      0.0     0.0     0.5
9 Kuwait               6.8    10.2      0.0     5.2     0.0    13.2      1.8     2.2     1.3      1.1     2.1     3.5
9 Qatar **             2.4      5.0     0.0     0.0     0.0      0.0     0.6     1.4     0.0      0.0     0.6     1.3
9 Singapore            1.2      1.7     1.8     0.0     0.0      0.0     0.0     0.0     0.0      0.0     0.0     0.3
9 Taiwan, China       S80    94.2   38.9   18.7  100.0    18.5    28.8    35.8    22.4    27.2    30.2    35.9
9 United Arab Bm. *  2.9        5.3     0.0     3.0     0.0      0.0     0.3     1.4     0.0      0.0     0.0     1.0
Notes; /a Include additional quantitative restrictions in the form of all types of licences and import authorizati
quotas, import prohibitions, advance import deposits, foreign exchange restrictions, fixed customs valua
and state trading monopolies. It is calculated as % of products within a category that is affected by a
applied to a tariff line.
/b Countries with ** are the late 1980s data, where country classifications are as: 1 * Low income Africa,
2 - Middle income Africa, 3 - Low income Asia, 4 - Middle income Asia, S - Other Europe,
6 - Middle East, 7 - North Africa, 8 - Latin America, 9 - High income Non-OBCDs.
Sources: UNCTAD, Directory of Trade Regimes, 1994 and Handbook of Trade Control Measures of Developing Countries,
1987.



64
Tablo A.£6 Sectoral Averages of Quantitative Restriction Coverage Ratio /a in s0 Developing Countries
(Uhweight.d In %)
All         Agr Raw   Min.    Min. Non Per    All  Chem- Iron & Mach &  Other    All
80 LDCs /b         Primary   Food  Matl.    Ores   Fuels Metals  Manuf   icals  Steel Equip.  Manuf.   Goods
1 Benin **              15.1   21.9    11.8      0.0   30.6       0.0     6.4     4.8     0.0     0.0    12.1     9.1
1 Burkina Paso '*       46.8    28.7    69.3    23.9    97.2    73.6    93.2    94.7   100.0    96.6    90.1    80.1
1 Burundi                0.2     0.4     0.0     0.0      0.0     0.0     0.4     0.0     0.0     0.3     0.6     0.3
1 Centr Afr Rep *'       6.4    13.0     0.8     0.7      0.0     0.0     1.8     2.5     0.9     0.6     2.1     3.4
1 Cote dlIvoire **      11.5   19.4      0.1     4.5   25.0       0.0     4.3     6.6     0.7     6.1     2.7     6.2
1 Ethiopia               0.0     0.0     0.0     0.0      0.0     0.0     0.0     0.0     0.0     0.0     0.0     0.1
1 Ghana **              61.3    74.6   60.5   63.4    19.4    28.3    38.1        8.2    49.3    18.0   60.3   44.9
1 Guinea **              0.0     0.0     0.0     0.0      0.0     0.0     0.0     0.0     0.0     0.0     0.0     0.0
1 Kenya                 34.5   62.8   14.7       7.5     2.8      5.2    38.3     5.4   24.4    16.1    65.8    37.1
1 Madagascar             0.8     0.0     0.0     1.5      0.0     5.9     1.6     1.4     0.0     0.9     2.1     1.7
1 Malawi                84.8   76.1    99.6   84.3    74.3   100.0   93.8    86.3    87.3   100.0    94.7   91.3
1 Mozambique **          0.0     0.0     0.0     0.0    0.0       0.0     0.0     0.0     0.0     0.0     0.0     0.0
1 Nigeria               22.7    38.9    17.5     1.5      0.0     0.0     3.1     0.5     0.0     0.0     6.2     8.8
1 Sierra Leone **      100.0   100.0  100.0  100.0  i00.0   100.0  100.0  100.0  100.0   100.0  100.0   100.0
1 Somalia **            13.6     6.7     0.0   47.8    38.9   13.2        2.9    5.3      0.0     1.4     2.9     6.3
1 Sudan **              12.0   25.1      0.0     0.7      0.0     0.9     9.4     3.3     0.0     3.8    15.9    10.0
1 Tanzania              19.7   12.3   36.4    18.7        1.4    30.2   30.7   32.3    13.4   10.3   42.4    27.5
1 Uganda **              0.0     0.0     0.0     0.0      0.0     0.0     0.0     0.0     0.0     0.0     0.0      0.0
1 Zaire                100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0   100.0
1 Zambia **              0.0     0.0     0.0     0.0      0.0     0.0     0.0     0.0     0.0     0.0     0.0      0.0
1 Zimbabwe              99.7   100.0    99.9  100.0   98.8   98.1   91.2   94.5   100.0    97.5    85.5    93.6
2 Angola **              0.0     0.0     0.0     0.0      0.0     0.0     0.9     1.4     0.0     0.5     1.1      0.7
2 Cameroon *            13.7     9.1   37.7      5.5      0.0     1.9   21.8    10.3      4.4     7.8    36.0    19.5
2 Congo **               1.7     3.3     0.0     0.7      0.0     0.0     3.1     4.0     1.8     2.2     3.4      3.1
2 Mauritius             30.8    42.0    12.3    16.4    12.9    50.0    36.9    17.8    53.5    46.1    38.8    35.2
2 Senegal **             5.7    10.1     0.0     3.0     4.6      1.9     5.1     8.3    10.7     3.0     4.0     5.7
3 Bangladesh  *t        53.3   73.6   51.5   20.3   44.0    13.6    46.8    30.7   39.3    30.7    62.5    48.6
3 China                 11.5     3.4    38.4     3.2   12.3       0.2    11.3     3.1    74.6     9.9     8.1    11.3
3 India                 65.0   82.3   44.5    59.0    66.8    38.3    56.2    51.2   14.0    36.3    73.5    58.8
3 Nepal                  1.0     0.0     0.0     2.2     0.0      6.6     0.5     0.0     0.0     0.3     0.8     0.7
3 Pakistan               6.8     8.6     3.3     3.0   22.1       0.0    17.3   13.6      0.0     4.1    27.6   14.5
3 Sri Lanka              2.8     4.5     0.0     4.0     0.0      1.9     4.0    10.6     0.0     5.8     0.6     3.8
4 Indonesia              2.2     4.2     0.0     1.0      0.0     0.8     1.8     1.2    14.3     2.3     0.4     1.9
4 Korea                  9.0    17.6     1.8     0.7     2.8      0.0     0.2     0.1     0.0     0.0     0.3     2.6
4 Malaysia               1.2     2.0     0.0     2.2      0.0     0.0     2.4     3.6     8.5     2.2     1.2     2.1
4 Papua N Guinea **      9.4   19.9      0.0     0.0      0.0     0.0     0.0     0.0     0.0     0.0     0.0     2.6
4 Philippines tt        38.2    56.5    21.1    12.7    75.0      0.0    43.7    49.0    20.1    87.5   22.3    42.4
4 Thailand               8.8   12.7      3.8     7.8     8.3      3.6     4.2     0.9     0.6     3.6     6.3     5.5
S Romania **             0.0     0.0     0.0     0.0     0.0      0.0     0.0     0.0     0.0     0.0     0.0     0.0
s Turkey                 2.0     0.0     0.9     9.7     0.0      4.7     3.0     1.8    16.0     5.9     0.5     2.7
s Yugoslavia            36.6    39.8   39.4   21.8   25.3   42.9    25.9    10.9    81.9   21.5    28.2    29.2
6 Bahrain *-             2.0     3.9     0.8     0.0     0.0      0.0     1.3     2.0     0.0     3.4     0.0     1.5
6 Iran **               98.8   97.9   99.9  100.0   97.2  100.0   94.5    75.6  100.0   100.0    99.5    95.4
6 Jordan **             39.2   82.0      0.9     4.5     0.0      0.0     3.6     9.8     0.0     2.3     2.1    11.7
6 Oman *-                2.2     2.9     0.9     4.5     0.0      0.0     3.8     7.8     0.0     3.3     2.7     3.6
6 Saudi Arabia           4.4     8.9     0.8     0.0     0.0      0.0     3.1     5.6     0.0     5.0     1.4     3.5
6 Syria **              25.2   40.8    16.1   11.9   11.8         0.5    31.7    20.5     0.0    28.9    41.8    30.0
6 Yemen **              18.2    19.8    38.9     1.1     0.0      0.0    30.3     0.9     0.0    45.4    39.4    26.8
7 Algeria               26.8   57.2      0.0     0.0     0.0      0.0     2.8     1.2     0.0     0.2     5.2     9.5
7 Egypt                 31.0    53.8     9.6     7.5   12.9    16.4   43.7    48.9    17.3    29.5    51.7   40.3
7 Libya **              15.0    29.2     4.8     2.2     0.0      0.0     8.4     1.6     1.3     6.7    13.2    10.3
7 Morocco **            40.2    69.2    13.6     0.0   65.0       0.9    20.9     8.7     3.1    11.8    33.0    26.2
7 Tunisia               32.7   52.5    9.4    17.1    26.7   17.4    29.7    11.1         8.5    18.8    46.1    31.0
8 Argentina              0.0     0.0     0.1     0.0     0.0      0.0     0.3     0.1     0.0     1.0     0.0     0.2
8 Bolivia                1.6    3.4      0.0     0.0     0.0      0.0     1.8     2.9     0.0     3.4     0.7     2.0
8 Brazil                 4.1     0.5     0.5     1.6   47.3       1.9     0.4     2.1     0.0     0.0     0.0     1.5
8 Chile                  0.0     0.0     0.0     0.0     0.0      0.0     0.0     0.0     0.0     0.0     0.0     0.0
8 Colombia               1.0     1.2     1.9     0.0      0.0     0.0     1.6     5.5     0.0     0.3     0.7     1.7
8 Costa Rica *-          0.0     0.0     0.0     0.0      0.0     0.0     1.0     0.0     0.0     4.1     0.0     0.8
8 Ecuador               30.2   43.0    31.2      7.3    19.6      6.6    25.7    19.8   14.2    11.1    36.9    27.0
8 E1 Salvador **        17.7   33.9      0.9     3.0     0.0   11.3    19.7       0.7     0.8    10.3    35.1    19.2
8 Guatemala **          12.5   20.6      9.2     6.0     0.0      0.0    4.2    13.3      0.0     3.3     1.2     6.6
8 Guyana **             13.0   27.7      0.0     0.0     0.0      0.0     1.4     0.4     0.0     0.2     2.7     4.6
8 Haiti **              19.9    38.3     1.8     0.7   16.7      2.8    11.1      7.3     6.7     0.5    18.8    13.5
8 Jamaica **            10.3   22.5      1.9     3.0     0.0      0.0     4.6    10.3     0.0     3.3     1.2     6.0



65
8 Mexico                  6.1    10.4      1.1      0.0    14.7      0.0     0.7      0.3     0.0      1.4     0.5      2.4
8 Nicaragua **           25.6    52.2      3.5      0.7     1.4      1.9    28.5      7.0     2.0    16.1    47.5    27.8
8 Paraguay                6.4    12.5      2.2      0.0     0.0      0.0     0.0      0.0     0.0      0.1     0.0      1.8
8 Peru **                72.9    99.9    67.4    20.9    38.9    52.8    45.8    24.9   100.0    14.4    64.4    53.1
8 Trinidad & Tob. **   29.4    58.5        0.0      2.1    20.8      2.2    16.5      5.1    10.0      6.3    27.6    20.1
8 Uruguay **              1.0      0.8     0.3      0.0     0.0      0.0     1.0      1.1     0.0      2.5     0.3      1.1
8 Venezuela               1.0      0.9     1.0      1.5     0.0      1.9     1.4      4.6     0.0      0.3     0.7      1.6
9 Bahamas **              0.0      0.0     0.0      0.0     0.0      0.0     0.1      0.0     0.0      0.0     0.2      0.1
9 Cyprus **              40.8    68.4    15.8       9.0    48.1      5.7    28.6    30.3    23.3    47.0    19.3    32.2
9 Hong Kong               0.8      1.7     0.0      0.0     0.0      0.0     0.3      1.4     0.5      0.0     0.0      0.5
9 Xuwait                  6.4      9.3     0.0      5.2     0.0    13.2      1.8      2.2     1.3      1.1     1.9      3.3
9 Qatar **                2.4      5.1     0.0      0.0     0.0      0.0     0.5      1.4     0.0      0.0     0.6      1.2
9 Singapore               1.2      1.7     1.8      0.0     0.0      0.0     0.0      0.0     0.0      0.0     0.0      0.3
9 Taiwan, China          58.0    94.2    38.9    18.7   100.0    18.5    28.8    35.8    22.4    27.2    30.2    35.9
9 United Arab Em. *       2.9      5.3     0.0      3.0     0.0      0.0     0.3      1.4     0.0      0.0     0.0      1.0
Notes: /a Include quantitative restrictions in the form of all types of licences and import authorization, quotas,
and import prohibitions. It is calculated as t of products within a category that is affected by a QR
applied to a tariff line.
lb Countries with ** are the late 1980s data, where country classifications are as: 1 - Low income Africa,
2 - Middle income Africa, 3 - Low income Asia, 4 - Middle income Asia, 5 - Other Europe,
6 - Middle East, 7 - North Africa, 8 - Latin America, 9 - High income Non-OECDs.
Sources: UNCTAD, Directory of Trade Regimes, 1994 and Handbook of Trade Control Measures of Developing Countries,
1987.



66
Table A.7: Pre- and Post Uruguay Round IDport Coverage Ratio of Non-Tariff
Measures in OECD Karket
1992 OECD     Pre-UR    Post-UR
Imports   Coverage   Coverage    Percent        Level
80 LDCs               ($ mill)  Ratio (I)  Ratio (e)       Change      Change
1 Benin                       76         1.3        0.3       -76.9        -1.0
1 Burkina Faso                53        12.3        0.0      -100.0       -12.3
1 Burundi                     74         0.1        0.0      -100.0        -0.1
1 Central African Rep        102         0.1        0.1         0.0         0.0
1 Cote d'Ivoire             2258        14.1        1.5       -89.4       -12.6
1 Ethiopia                   160         1.8        1.2       -33.3        -0.6
1 Ghana                      886         0.4        0.2       -50.0        -0.2
1 Guinea                     526         0.3        0.1       -66.7        -0.2
1 Kenya                      837         3.5        0.3       -91.4        -3.2
1 Madagascar                 340         7.6        2.9       -61.8        -4.7
1 Malawi                     393        29.6        3.7       -87.5       -25.9
1 Mozambique                 147        10.3        0.6       -94.2        -9.7
1 Nigeria                  11379        14.4       14.4         0.0         0.0
1 Sierra Leone               354         0.1        0.0      -100.0        -0.1
1 Somalia                     19         9.0        0.0      -100.0        -9.0
1 Sudan                      149        12.4        4.1       -66.9        -8.3
1 Tanzania                   266         3.8        0.5       -86.8        -3.3
1 Uganda                     162         0.0        0.0         0.0         0.0
1 Zaire                     1277         0.0        0.0         0.0         0.0
1 Zambia                     630         0.7        0.0      -100.0        -0.7
1 Zimbabwe                   875        20.3        6.9       -66.0       -13.4
2 Angola                    3684         4.7        4.7         0.0         0.0
2 Cameroon                  1577        20.8       19.7        -5.3        -1.1
2 Congo                     1440        38.5       38.0        -1.3        -0.5
2 Mauritius                 1279        61.6        2.2       -96.4       -59.4
2 Senegal                    362        19.1        0.0      -100.0       -19.1
3 Bangladesh                2060        58.3       10.5       -82.0       -47.8
3 China                    70347        18.2        3.3       -81.9       -14.9
3 India                    13532        29.4        5.1       -82.7       -24.3
3 Nepal
3 Pakistan                  3979        50.4        6.9       -86.3       -43.5
3 Sri Lanka                 2067        50.5        0.9       -98.2       -49.6
4 Indonesia                22741        10.1        2.6       -74.3        -7.5
4 Korea                    42981        24.0       10.9       -54.6       -13.1
4 Malaysia                 23862         6.5         0.7      -89.2        -5.8
4 Papua N Guinea
4 Philippines               9496        20.4        1.2       -94.1       -19.2
4 Thailand                 22544        25.3        2.2       -91.3       -23.1
5 Czechoslovakia            4420        19.2        2.5       -87.0       -16.7
5 Hungary                   4302        24.8        6.7       -73.0       -18.1
5 Poland                    5870        17.1        6.0       -64.9       -11.1
5 Romania                   1388        27.1       10.9       -59.8       -16.2
5 Turkey                    6286        36.8        3.9       -89.4       -32.9
5 Yogoslavia                9611        19.7         5.5      -72.1       -14.2
6 Bahrain
6 Iran                      9822        10.1         9.9       -2.0        -0.2
6 Jordan                     148         2.3         1.1      -52.2        -1.2
6 Oman
6 Saudi Arabia
6 Syria                     1328        20.3       20.2        -0.5        -0.1
6 Yemen                      817         2.1        2.1         0.0         0.0
7 Algeria                   9428        25.5       25.4        -0.4        -0.1
7 Egypt                     3853        23.2        9.3       -59.9       -13.9
7 Libya



67
7 Morocco                  4778        30.2        3.0       -90.1      -27.2
7 Tunisia                  3377        25.7        4.6       -82.1      -21.1
8 Argentina                6606        15.5        1.2       -92.3      -14.3
8 Bolivia                    271        0.7        0.3       -57.1       -0.4
8 Brazil                  24369        10.6        2.1       -80.2       -8.5
8 Chile                     7017        6.5        0.2       -96.9       -6.3
8 Colombia                 5724         6.6        2.5       -62.1       -4.1
8 Costa Rica               2349        15.7        0.9       -94.3      -14.8
8 Ecuador                  2537         5.7        1.5       -73.7       -4.2
8 El Salvador                535        4.5        1.3       -71.1       -3.2
8 Guatemala                 1525       12.5        1.6       -87.2      -10.9
8 Guyana                     325       41.6        3.9       -90.6      -37.7
8 Haiti                      145       13.0        0.0      -100.0      -13.0
8 Jamaica                  1287        35.2        2.7       -92.3      -32.5
8 Mexico                  43301         7.9        4.8       -39.2       -3:.1
8 Nicaragua                 229        10.1        1.3       -87.1       -8.8
8 Paraguay                   306        0.9        0.3       -66.7       -0.6
8 Peru                     2161         5.7        0.0      -100.0       -5.7
8 Trinidad & Tobago        1219         7.6        1.3       -82.9       -6.3
8 Uruguay                    790       33.7        0.7       -97.9      -33.0
8 Venezuela               11318         9.2        8.3        -9.8       -0.9
9 Bahamas                   1038        1.9        1.9         0.0        0.0
9 Cyprus                     480       18.7        2.9       -84.5      -15.8
9 Hong Kong               26368        34.3        1.8       -94.8      -32.5
9 Kuwait
9 Qatar
9 Singapore               22686         7.1        1.3       -81.7       -5.8
9 Taiwan, China           55335        12.0        3.1       -74.2       -8.9
9 United Arab Em.
Notes:  /a Non-tariff measures include tariff quotas, increased duties, safeguard duties,
retaliatory duties and customs surcharges, variable levies and flexible import fees,
non-automatic licensing and discretionary licensing, quotas and prohibitions, voluntary
export restraints, MFA quotas and textile restraint arrangemnts, orderly marketing
arrangements, other quantitative restrictions, other restrictions imposed under the MFA
minimum, reference or other import price controls, voluntary export price restraints,
state monopoly of imports, and local content regulations.
/b Calculations of non-tariff measures are based on all goods imported in OECD markets.
Sources: World Bank-UNCTAD, SMART data base; Low and Yeats, "Non-tariff Measures and Developing
Countries", World Bank Policy Research Working Paper #1353, 1994; and Amjadi and Yeats,
"Non-tariff Barriers Africa Faces", World Bank Policy Research Working Paper #1439, 1995.



68
Table A.8: Average Tariffs, Non-Tariff Measures and Uconatac growth for 80
Developing Countrisa (%)
Recent      Total         All        GDP      Export    Import        Open-
80 LDCs /g        Tariffs /a Charges /b    NTMs /c  Growth /d  Growth /a  Growth /e    ness /f
I1Benin                41.6       49.4        17.0         2.7        4.8        -4.8       37.0
1 Burkina Faso **    60.8         76.8        80.6         3.7        4.1         3.4       17.2
1 Burundi              36.9       37.9         0.3         3.6        5.6        -0.4       21.6
1 Centr Afr Rep **   32.0          39.3        5.1         1.0       -1.1         2.1       23.0
1 Cote d'Ivoire        22.0       25.3         6.6         0.1        2.7        -4.2       49.0
1 Ethiopia             29.6        31.2       22.5         1.8       -2.2        -1.3       17.1
1 Ghana                17.0        33.0       48.4         3.5        5.3         2.7       34.6
1 Guinea               10.8        10.8       39.2         3.7       -4.5        -3.2       39.9
1 Kenya                22.0       44.7        37.8         3.8        3.3        -0.8       36.0
1 Madagascar            6.1        40.1        1.7         0.9        0.4        -3.3       24.6
1 Malawi               16.3        16.3       91.3         3.0        2.1         4.0       35.2
1 Mozambique **        15.6       25.6        56.9         1.0       -6.9         0.0       50.7
1 Nigeria              32.8       39.8         8.8         2.7       -0.6       -11.2       39.9
1 Sierra Leone         41.0       41.0       100.0         1.1       -0.1        -7.4       38.0
1 Somalia              23.2       31.0         6.3         2.4       -7.8        -4.5       46.8
1 Sudan                43.0       56.6        10.0         1.9       -3.8        -4.5       18.2
1 Tanzania             27.5       27.5        79.7         3.6       -0.4        -1.1       26.1
1 Uganda               17.1        17.1       13.9         3.8       -1.4        -2.3       18.7
1 Zaire                24.7       24.7       100.0         1.9        1.6         3.3       29.5
1 Zambia               13.6        13.6        0.0         0.9       -2.6        -3.2       52.9
1 Zimbabwe             17.2        30.1       93.6         2.7       -1.1         0.2       28.3
2 Angola **            11.6        20.6        0.7         0.3       11.5         1.1       47.0
2 Cameroon             18.8       42.2        20.7         0.0        6.8        -2.5       32.4
2 Congo **             32.0       33.2         4.6         2.7        3.0        -4.4       75.4
2 Mauritius            29.0        60.3       35.2         6.0        7.6        10.3       80.5
2 Senegal              12.6        12.6        7.2         2.8        2.9         1.8       36.1
3 Bangladesh           50.0        83.2       49.4         4.2        9.8         4.8       18.4
3 China                35.6        35.6       11.3         9.6       11.5         9.7       29.6
3  India               47.8        95.2       62.6         S.2        7.0         4.2       12.1
3 Nepal                16.1        16.1        0.7         5.0        9.7         4.4       21.2
3 Pakistan             50.0        73.3       14.5         6.0       10.1         3.0       30.1
3 Sri Lanka            26.0        29.2        3.8         4.0        7.3         4.0       55.9
4 Indonesia            17.0       20.1         2.7         5.8        6.7         4.5       39.9
4 Korea                 7.9        12.3        2.6         9.1       12.3        11.4       56.4
4 Malaysia             13.0        17.6        2.1         6.2       12.6         9.7      115.5
4 Papua N Guinea **   7.0          14.2        2.6         3.1        6.0         1.2       69.8
4 Philippines          21.7        33.1       44.9         1.4        3.4         4.5       42.8
4 Thailand             23.1        37.8        5.5         8.2       15.5        13.8       57.3
5 Romania              12.3        12.3        0.0        -2.5      -10.8        -3.0       25.3
5 Turkey                9.0        24.7       96.4         4.6        9.1        11.0       25.9
5 Yugoslavia           11.8        12.0       29.2         0.3        4.0         1.2       39.1
6 Bahrain               3.0         3.0        1.5         2.2        3.9         0.5      123.9
6 Iran **              20.7       100.9       99.3         2.6        4.2         1.2       19.1
6 Jordan               20.5        28.0       12.9         1.2        5.8        -2.4       68.2
6 Oman                  2.5         2.5        3.6         7.6        8.4         1.2       60.7
6 Saudi Arabia         12.1        12.1        3.9         0.4       -4.2        -5.5       74.0
6 Syria                11.0       27.5        36.6         1.8        8.3        -5.6       31.6
6 Yemen **             16.2       22.0        28.7         3.4        1.2        -5.3       32.8
7 Algeria              22.9       24.9         9.5         2.1        3.0        -5.1       38.2
7 Egypt                42.2       42.2        45.2         4.3        0.8        -1.5       34.7
7 Libya                27.0       34.7        10.3        -5.7       -9.3        -7.2       65.0
7 Morocco              20.2       36.1        27.6         3.7        3.9         4.0       40.2



69
7 Tunisia              33.2       30.6       32.7         3.7        7.2        3.0        64.6
8 Argentina            15.8       19.4        0.2         0.8        3.2       -2.1        13.1
8 Bolivia               9.8        9.8        2.0         1.1        1.7       -0.1        38.4
8 Brazil               10.7       15.4        1.5         2.1        5.2       -0.8        15.2
8 Chile                11.0       19.9        0.1         5.1        6.6        4.3        41.1
8 Colombia             11.5       11.8        1.7         3.7       11.0       -0.9        25.8
8 Costa Rica           11.7       61.7        0.8         3.6        5.6        4.9        62.1
8 Ecuador              11.9       11.9       63.6         2.4        3.4       -2.2        38.4
8 El Salvador           9.2        9.2       19.2         1.6       -2.8        2.0        38.2
8 Guatemala            16.0       22.8        7.4         1.7       -0.1         1.4       31.7
8 Guyana               20.0       20.0       16.0        -1.3        0.2        -1.4      124.1
8 Haiti **             11.6       16.8       30.8        -0.9       -0.7       -1.5        47.6
8 Jamaica              19.3       19.3        6.6         2.3        2.1         2.6       75.5
8 Mexico               13.5       16.9        3.9         1.6        5.4         6.7       24.3
8 Nicaragua            17.4       24.6       27.8        -1.8       -4.7        -3.3       48.6
8 Paraguay              8.0        8.0        1.8         2.8        8.6         7.5       27.3
8 Peru                 16.3       66.3       53.4        -0.5       -0.3        -1.6       20.8
8 Trinidad & To        17.0       43.1      *23.4        -3.6       -2.1        -8.0       70.1
8 Uruguay              14.7       28.5       14.1         1.3        2.6         1.2       30.9
8 Venezuela            11.8       17.4        2.4         2.1-       1.7        -3.6       38.8
9 Bahamas **           32.3       33.8        0.1         4.1        9.6         9.8      206.0
9 Cyprus               10.1      -23.5       32.2         6.1        4.7         7.0       60.4
9 Hong Kong             0.0        0.0        0.5         6.5       15.8        11.9      144.4
9 Kuwait                4.2        4.2        3.5         1.3       -6.0       -4.4        65.2
9 Qatar                 5.0        5.0        1.3        -1.0        1.5        -1.1       75.2
9 Singapore             0.4        0.4        0.3         6.9       12.7         9.7      298.7
9 Taiwan, China        11.2       11.2       35.9         8.4       10.0        13.2       79.2
9 United Arab Em. *   4.5          4.5        1.0         0.3        6.0         1.9       87.8
Notes: /a Based on unweighted averages of most recent available tariffs in many countries.
/b Include unweighted averages of tariffs and para tariffs for all goods.
/c Unwighted averages of non-tariff measures for all goods.
/d Least square growth rate of real GDP from 1980-93.
/e Least square growth rate of merchandise goods exports and imports in constant
prices from 1980-93.
/f Average total trade (exports + imports) as e of GDP from 1980-93.
/g Countries with ** are the late 1980s tariffs, total import charges, and all NTMs,
where country classifications are the same as Table A.1.
Sources: UNCTAD, Directory of Trade Regimes, 1994 and Handbook of Trade Control Measures of
Developing Countries, 1987; GATT/WTO, Trade Policy Review, various issues, 1990-95;
UN COMTRADE data base; and World Bank, World Development Report, 1995.



70
Table A.9: Average Tariffs and NTM. For Industrialized Countries (%)
Unwgt    Unwgt  Imp Wgt  Imp Wgt    Unwgt    Unwgt    Unwgt    Unwgt
Tariff   Tariff   Tariff   Tariff       NTMs     NTMs       QRs       QRs
Country                 1989      1993     1989      1993     1989      1993     1989      1993
Australia              14.2       8.2     13.7       6.4      3.4       0.7       0.5      0.0
Austria                11.0       9.5     10.6       8.5     65.8      55.6     13.4      11.9
Canada                  9.1       8.8      6.9       6.7     11.1      11.0      6.6       6.8
European Union          7.4       7.6      6.0       6.2     26.6      23.7     19.S      17.2
Finland                 7.7       7.4      5.6       5.2     10.6       8.4      9.0       7.8
IceLand                 3.8       3.7      4.4       4.3                3.9                2.8
Japan                   6.9       7.0      3.8       3.6     13.1      12.2     11.7      10.5
New Zealand            14.5       8.5     14.8       8.0     14.1       0.4     13.9       0.0
Norway                  5.7       5.6      4.4       4.3     26.6      23.7     19.5      17.2
Sweden                  4.7       4.5      3.5       3.4     32.6      29.8     15.2       1.2
Switzerland             4.4       4.2      4.3       4.5     12.9      13.5      1.7       1.8
United States           6.2       6.4      4.0       4.0     25.5      22.9     20.4      18.1
21 INDs Average         8.0       6.8      6.8       5.4     22.0      17.2     11.9       7.9
Standard Deviation      3.4       1.8      3.8       1.6     16.2      14.8      6.6       6.7
Source: OECD, Indicators of Tariff and NTB, 1996.



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