JOURNAL ARTICLEOscar Chiwira · Lovemore Muchingami · Lawrence Jambani
International Journal of Research in Business and Social Science · 2023
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This study examines the short-run and long-run relationships between exports and economic growth in the Sothern Africa Customs Union (SACU), as well as the corresponding threshold level. The study used panel data covering the period 1980 to 2021 and employed the Autoregressive Distributed Lag (ARDL) Bounds to test for co-integration relationships, and the Generalized Least Squares (GLS) to determine the respective threshold level. Exports positively support economic growth both in the short-run and in the long-run in SACU. There is long-run bidirectional causality between exports and economic growth. The minimum threshold for exports is 59%. That is, exports only start contributing significantly to economic growth when they are above 59% of the Gross Domestic Product (GDP). SACU should put in place economic policies and regulations that are skewed towards the improvement of the competitiveness of its local products on the global market and also strategically consider export-oriented industrialization strategies. Efforts should also be channeled towards the implementation of bilateral and multilateral trade agreements and harnessing the synergic benefits through the adoption of deliberate value chain mechanisms and initiatives.
DOI 10.20525/ijrbs.v12i8.29122 Crossref citations3 OpenAlex citations
JOURNAL ARTICLENombeko Gumbo · Peter Nkala
International Journal of Research in Business and Social Science · 2023
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Trade facilitation is widely touted in the literature as a means to increase trade, capital inflows, and economic growth as a result of lower transaction costs; however, its implementation and efficacy pose challenges, especially for developing nations. Despite controversies and differing perspectives on these challenges, some of which were published prior to February 22, 2017, when the Trade Facilitation Agreement went into effect, there is no meta-analysis that evaluates the validity of these challenges. This qualitative meta-analysis is a systematic review of qualitative research examining the difficulties and obstacles developing countries face in instituting trade facilitation reforms. This document lays the groundwork for resolving general trade facilitation implementation challenges in Southern Africa, and in particular Zimbabwe. Significant obstacles to the successful implementation of trade facilitation initiatives include limited financial resources, infrastructural inadequacy, and inadequate institutional architecture. Requisite human capital inadequacy is one of the primary impediments to the successful implementation of the trade facilitation reform process. The elimination of these obstacles would unquestionably boost innovation in trade and commerce, as well as the region's trade legitimacy. Trade liberalization, improvement of legal inter-regional trade, and active participation by merchants in global value chains could be advantageous to governments in developing countries through trade facilitation.
DOI 10.20525/ijrbs.v12i6.27524 Crossref citations5 OpenAlex citations
JOURNAL ARTICLEEliah Chilangazi · Chacha Magasi
International Journal of Research in Business and Social Science · 2023
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This paper delves into the intricate challenges encountered by Tanzania in effectively implementing the East African Community (EAC) Common Market Protocol (CMP) pertaining to the seamless movement of goods to Kenya. The research adopts a case study design, employing qualitative and in-depth methods to gather data. The data collection process utilizes a purposeful sampling technique involving 30 participants, and thematic analysis is employed for data analysis. The findings highlight several tariff barriers that hinder the effective implementation of the EAC CMP, including customs duties, quantitative restrictions, measures with equivalent impact to customs duties, and those with equivalent impact to quantitative restrictions. Furthermore, the study uncovers non-tariff barriers (NTBs) that impede the free movement of goods from Tanzania to Kenya, such as political barriers, high transportation costs, food insecurity, discrepancies in standards, limited logistics and trade services, and restricted access to finance. The study concludes that the EAC Partner States bear the responsibility of eliminating existing tariff and non-tariff restrictions that obstruct trade, as well as refraining from imposing new ones. This research significantly contributes to our understanding of the economic integration within the EAC by shedding light on the novel challenges encountered in the implementation of the CMP concerning the free movement of goods.
DOI 10.20525/ijrbs.v12i4.26422 Crossref citations5 OpenAlex citations
JOURNAL ARTICLEPhillip Mogashwa · Sehludi Brian Molele
International Journal of Research in Business and Social Science · 2023
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This study scrutinises drivers of trade performance in the SADC region amid the full implementation of the African Continental Free Trade Area (AfCFTA). Where the short and long-run impact, through the Autoregressive Distributive Lag (ARDL) and forecasts through IRF of external debt, debt service cost, GDP per capita, Foreign Direct Investment (FDI), and Terms of Trade (TOT) on the trade balance is interrogated. In the long run, external debt, debt service costs, and GDP per capita negatively influenced the trade balance. TOT was found to be an insignificant predictor. This implies that these variables were among the significant drivers of trade balance while the impact of terms of trade is negligible in the region. FDI positively impacts regional trade balance, which informs us that it acts as a stimulus for trade in the area. Short-run results revealed that external debt and GDP per capita affected trade balance positively, while debt service costs, FDI and TOT were found to have a negative impact. IRF results showed that shocks from external debt and per capita GDP pose a positive instant impact, while shocks from FDI and TOT were proven to worsen the trade balance in the region. The region needs an FDI stimulus.
DOI 10.20525/ijrbs.v12i3.22921 Crossref citations1 OpenAlex citations
JOURNAL ARTICLEAjeigbe Kola Benson
International Journal of Research in Business and Social Science · 2023
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This study used secondary data from World Development Indicators to examine the implication of the Russia-Ukraine war on Trade relations and Foreign Direct Investment flows into other parts of the world. Data from 85 countries between 2012 and 2021 were analyzed using the generalized method of moments (GMM) technique. Findings revealed that the coefficients of export goods, international trade represented by external trade, food exports and fuel exports had positive and significant results from both panels and all the sub-regions, except for Europe, which revealed a mixed result. Conversely, results from food imports, military expenditure, fuel imports and fossil energy consumption revealed negative but significant results, except food imports in Europe showed an insignificant result. Conclusively, the findings of this study revealed that the current war has increased military expenditure, which has caused a significant setback to FDI and trade relations. This has undermined both bilateral and multilateral trade relations and cut off supply chains, markets, and value chains that have long existed before the crisis amongst countries across the globe. Therefore, world leaders should do everything possible to restore peace between these two countries because it will do the world better than their selfish desires. In addition, if the war degenerates more than this, it would not only be injurious to the global market, trade routes, economy and FDI but can lead the world to another world war. Conclusively, this study will help world countries, governments, leaders, policymakers, investors, and companies in various decision-making endeavors, including war-related decisions. World leaders with management crisis skills who can unite nations should help mediate the conflict between Russia and Ukraine to restore peace. However, further studies are still required on this ongoing war for scholarly guidance as there are still limited empirical studies in the world literature regarding this crisis.
DOI 10.20525/ijrbs.v12i2.24038 Crossref citations9 OpenAlex citations