Impacts of Non-Tariff Barriers to International Trade on the Growth of Small Business in Tanzania

Abstract

International trade is a vital component of the global economy. However, to realise sustainable benefits of international trade, a national’s external trade policy must identify the non-tariff barriers (NTB) and tariff barriers that hinder small business from participating in international trade and enhance their growth. Though NTBs are largely believed to restrict trade, there is evidence suggesting that NTBs facilitates trade, and provide small businesses a chance to participate in international trade and grow. Therefore, the purpose of this study is to examine the relationship between NTBs and sales growth of small business in Tanzania. This study applied correlational design to analyze quantitative data quantitative collected from managers/owners of small businesses selected using stratified sampling technique. The data was gathered using structured questionnaire from 240 managers/owners of small businesses in Temeke and Ubungo districts of Dar es Salaam City. The quantitative data were analyzed using descriptive and multiple linear regression model to ascertain the relationship between NTBs and sales growth of small business. The findings of this study indicate that, three variables of technical barriers to trade, namely, quality management certification, sanitary and phytosanitary and packaging and labelling have positive and significant association with sales growth of small business, while custom procedures has negative and significant link with sales growth of small business. On the contrary, certificate of origin and product certification were found to have non-significant relationship with sales growth of small business.

Keywords

• international trade markets
• technical barriers to trade
• non-tariff barriers to trade