Export taxes as a trade policy tool in Malawi: the case of timber products
type: CreativeWork
description: The study examines the export tax as a trade policy tool in Malawi, with a specific focus on the timber industry. This study was motivated by the sudden imposition of an export tax on timber trade by the Malawi Government in 2011, as a reactive policy to an upsurge in timber exports from Malawi. The objective of the study was, therefore, to investigate why the Malawi Government decided to impose the export tax, and whether this trade policy tool has been effective in meeting the objectives. In this regard, the study was done in a broad manner to cover both the theoretical aspects of the export tax, as a trade policy tool, and the practical realities about the Malawi Government's management of the forestry sector and the timber trading in an environment where the Government decided to join the global rules-based trading system. The study used a descriptive explanatory design, employing qualitative methods that involved the use of questionnaires and analysis of the existing literature. The results revealed that an export tax is a duty that is applied on products before they are exported in order to achieve certain objectives, which include government revenue collection, domestic price stabilization, achieving food security, or promoting value addition, hence, industrial development. The review of the literature has demonstrated that care should be exercised when adopting this policy tool because export taxes can be trade-restricting and welfare diminishing on a country, or can constitute a "beggar-thy-neighbour" policy when not properly designed. It is in consideration of such consequences that it has now become fashionable for modern free trade agreements (FTAs) to include provisions on export taxes. For instance, the SADC Protocol on Trade includes Article 5 which prohibits Member States from applying any export duties on goods for export to other Member States. However, from the study, it has been established that if the export taxes are properly designed and imple…
abstract: The study examines the export tax as a trade policy tool in Malawi, with a specific focus on the timber industry. This study was motivated by the sudden imposition of an export tax on timber trade by the Malawi Government in 2011, as a reactive policy to an upsurge in timber exports from Malawi. The objective of the study was, therefore, to investigate why the Malawi Government decided to impose the export tax, and whether this trade policy tool has been effective in meeting the objectives. In this regard, the study was done in a broad manner to cover both the theoretical aspects of the export tax, as a trade policy tool, and the practical realities about the Malawi Government's management of the forestry sector and the timber trading in an environment where the Government decided to join the global rules-based trading system. The study used a descriptive explanatory design, employing qualitative methods that involved the use of questionnaires and analysis of the existing literature. The results revealed that an export tax is a duty that is applied on products before they are exported in order to achieve certain objectives, which include government revenue collection, domestic price stabilization, achieving food security, or promoting value addition, hence, industrial development. The review of the literature has demonstrated that care should be exercised when adopting this policy tool because export taxes can be trade-restricting and welfare diminishing on a country, or can constitute a "beggar-thy-neighbour" policy when not properly designed. It is in consideration of such consequences that it has now become fashionable for modern free trade agreements (FTAs) to include provisions on export taxes. For instance, the SADC Protocol on Trade includes Article 5 which prohibits Member States from applying any export duties on goods for export to other Member States. However, from the study, it has been established that if the export taxes are properly designed and imple…
author: Mkumba, Maxwell Young
language: eng
date published: 2015
date modified: 2026-07-22T22:22:47Z
provider: University of Cape Town
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: GSB: Faculty

PropertyValue
property ID: Handle
value: http://hdl.handle.net/11427/16597