for trade base on non-traffi barries

1. NON-TARIFF BARRIERS AND INTERNATIONAL
BUSINESS IN ECOWAS; A CASE STUDY OF
GHANA AND NIGERIA
Authors:
1. Terry Kojo Amoah
2. Duncan Abigaba
3. Vasty Owusu
Master Programme in International Business
St. Petersburg, 2023
Research Supervisor:
Prof. Romie F.Littrell (HSE)

2. OUTLINE
• Background Of The Study
• Research Problem
• Research Objective
• Research Questions
• Literature Review
• Theoretical Review
• Methodology
• Results & Discussion
• Conclusions
• Contributions & Limitation(s)
Master Programme in International Business
St. Petersburg, 2023

3. 1
ECOWAS
A regional inter governmental organization
comprising of 15 member states; Ghana,
Nigeria…
3
Non-Tariff Barriers
Various policy measures and regulatory
actions, excluding the standard customs
tariffs that have the potential to impact
trade volume, pricing, or both within the
global market for products. (Mbekeani,
2013; Boso et al., 2016, 2019))
2
International Business
Is the cross-border transactions of goods
and services, technology, capital and/or
knowledge between two or more countries.
(Subedi, 2022)
1
Key Terms:
BACKGROUND OF THE RESEARCH

4. Background of the Research
AfCFTA - The African
Continental Free Trade Area,
2018
African continent as an emerging market with great trade
prospects. (Milanzi, 2012; Soomro et al., 2019).
ETLS - ECOWAS Trade
Liberalization Scheme
Establishment , 1979
Continued push for Intra-Africans Trade.
2
Attracting multinational
corporations to invest in the
continent

5. RESEARCH PROBLEM
Under achievement of ECOWAS’
Internationalization objective.
Specific non-tariff impediments
that African enterprises face in
their internalization efforts have
garnered little scholarly attention
(Boso et al., 2019).
Non-tariff trade measures hinder
trade flows across ECOWAS
nations, notably between Ghana
and Nigeria.
(Adewuyi & Olayiwola, 2020)
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6. RESEARCH OBJECTIVE
To assess the possible ways non-tariff
barriers between Ghana and Nigeria can be
eliminated.
To identify the non-tariff barriers
faced by traders in Ghana and
Nigeria
To identify the relationship between
non-tariff barriers and international
business between Ghana and Nigeria.
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03
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7. RESEARCH QUESTION(S)
RESEARCH QUESTIONS
• What are the non-tariff barriers faced by traders in
Ghana and Nigeria?
• What is relationship between non-tariff barriers and
international business using Nigeria and Ghana as a
case study?
• What steps can be taken to eliminate non-tariff
barriers between Ghana and Nigeria?
RESEARCH DESIGN
QUALITATIVE using Descriptive
Statistical Approach - effective for
generating significant data which will
answer the research questions.
6

8. LITERATURE REVIEW
Study Sample Size Methodology Key Findings
Mpinganjira
(2011)
sampling frame developed
consisted of a total of 190 non-
exporting firms in Malawi
Survey NTBs have an impact on regional commerce
Adewuyi, A., and
Olayiwola, M.
(2020)
281 respondents Survey NTMs affect trade costs and hence market access.
Amoako-Tuffour
and Adom (2018)
30 exporting enterprises Interviews NTBs has detrimental effect on export performance
(manufactured and agricultural goods)
Deardorff and
Stern (1998)
NTBs are the impediments to trade that are not in the
form of tariffs. This includes widely recognized trade
distorting measures such as deliberate export restraints
and import quotas
Staiger (2012). NTBs are categorized into three main groups: Non-tariff
measures within the domestic economy application,
Non-tariff measures applied to exporting activities and
Non-tariff measures applied to importing activities 7

9. THEORETICAL BACKGROUND
Theory Key Concepts Citation
Trade diversion
effect
It is when the formation of a trade agreement (i.e. country’s entry into a customs
union) between countries decreases the price of the goods for more consumers,
and therefore increases overall trade.
Jacob Viner
(1950)
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As a result of NTBs, it becomes more expensive for enterprises to trade with some nations, causing
them to shift their business to other nations

10. THEORETICAL BACKGROUND
Non-tariff barriers can pose challenges for countries to specialize in the production of goods and
services where they have comparative advantage, thus diminishing their competitiveness in the
international market
Theory Key Concepts Citation
Comparative Advantage Theory Suggests that a country should produce goods that it
can produce more efficiently compared to other
countries.
David Ricardo
(1817)
9

11. THEORETICAL BACKGROUND
It recognizes that various barriers and costs hinder the flow of products and services across borders
and highlights the importance of trade facilitation measures in reducing these barriers and
promoting economic growth
Theory Key Concepts Citation
Theory of trade costs and trade
facilitation
Deals with the factors that affect the costs of
international trade and the measures taken to reduce
these costs and promote trade
Alberto & Wilson
(2009).
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12. METHODOLOGY
Research design
Data Collection
Data Analysis Methods
Qualitative; A descriptive statistical research approach which is
about the description of the data and the characteristics of the
population A d
Sampling method: Snowball sampling
Primary data: Questionnaire & phone Interview
Target Population: Traders trading between Ghana and Nigeria
Word cloud, charts, tables
The thematic analysis
Relative important index
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13. QUESTIONNAIRE DESIGN
2. Non-Tariff Barriers
This section is answered by
traders whose trade operation
involves the two countries.
3. Existing Relationship
This section is answered by
respondents who have experienced
some of non-tariff barriers.
4. Elimination Steps
This section is supposed to be
answered by everyone
Answered by everyone: Age,
gender, level of education, size
of business, type of business
operation, etc.
1. Demographics
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14. METHODOLOGY
Sample Description
● Survey: Questionnaire – Mix of closed, short text & Likert scale - online Gform tool
● Period: February 2023 – May 2023
● Languages: English
● Sample: 80 respondents who are involved on trade between Ghana & Nigeria
● Data collection:
○ Social media: Facebook, Instagram, Telegram, WhatsApp
○ Online platforms: LinkedIn & E-mails
○ Personal networks
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15. METHODOLOGY
Gender
41% 59%
Demographic Data
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Country
Education
Age
Source: Field Data, 2023

16. 16
Sector
Business Size
Trading across
borders ?
Source: Field Data, 2023
Business Data

17. • To analyze the data, we used Excel & R studio
Relative Important
Index (RII)
Step 2
To analyze and rank the stated impacts as a result of NTBs
between Ghana & Nigeria
Thematic analysis
Step 3
To analyze (deduce) the stated impacts as a result of NTBs
between Ghana & Nigeria
To deduce the stated relationship between NTBs and
international business; Ghana & Nigeria
Word Cloud
Step 1
To identify and group major NTBs encountered between
Ghana & Nigeria
METHODOLOGY
To analyze the given specific step(s) that can reduce non-
tariff barriers between the countries
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18. RESULTS
Word Cloud Outcome
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19. RESULTS
RII Outcome
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Discontinued product line or stopped trading with Ghana or
Nigeria
Rank of impacts ; index close 1 = higher impact , 0 = lower impact

20. RESULTS
Thematic Outcome (Steps)
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Recommendations analyzed under themes

21. Discussion
Questions Objective Outcome
1. What are the NTBs traders face
between Ghana & Nigeria?
To find out the NTBs facing traders between Ghana & Nigeria
NTBs familiarity : 74% of respondents
In a descending order: word cloud projects that NTBs with the biggest font
size was the pronounced barrier being experienced by traders.
By way of themes :
customs procedure measures were the topmost
followed by technical barriers to trade, licensing
and rule of origin. The least mentioned measure
was countervailing duty.
In specifics: unofficial payments at check points,
pre shipment inspections, product registration,
registration for importers, permit to export,
product quality performance, labelling
2. What is the relationship between
NTBs & International Business in
Ghana & Nigeria?
To find out the relationship between NTBs & International
Business in Ghana & Nigeria
91% agreed NTBs they face influence their decision-making process
whether non-tariff barriers have ever caused them to discontinue a
product line or stop trading with Ghana or Nigeria . (56% affirmation)
Interview via phone also confirmed that NTBs affected export
performance (eg import ban 2019 lead to export reduction)
Identified a negative or inverse relationship
between nontariff trade and international
business in Ghana and Nigeria
By way of:
Hindering market access
Increased cost from delayed shipment
3. What can be done to eliminate
NTBs between Ghana & Nigeria?
What can be done to eliminate the NTBs?
Respondents were asked: strategies they employed to mitigate the
impact of non-tariff barriers on their international business operations :
• Establishing networks in both markets
• use the diplomatic channels by way of engaging government agencies.
• 90% of the affected respondents indicated they’ve developed a market
● Promote mutual recognition agreements (i.e.
testing reports, product certifications)
● Strengthening of trade facilitation measures
(i.e. improved infrastructure at border crossing
and efficient logistics systems)
● Enhance transparency (i.e. online portal for
trade regulations update and payment) 23

22. Conclusions
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The non-tariff barriers faced by traders in
Ghana and Nigeria
Relationship between non-tariff barriers and international
business ( Ghana & Nigeria)
Steps to curb non-tariff barriers between Ghana and
Nigeria
Customs Procedure (unofficial payment at
border checks and delay pre shipments
process)
Licensing Requirements (Product registration,
Export & Import certificate)
Import ban
NB: out of which unofficial payment at check
points was topmost
The study unfolded the negative impact these identified
NTBs were having on traders hence presenting a
negative or inverse relationship between non-tariff
barriers and international business in Ghana and Nigeria
Bilateral ties in areas of Mutual Recognition of
Agreements (MRA)
ECOWAS level: streamlining and standardizing
documentation requirements for trade transactions for
the trade bloc
Enhance transparency: establish online platforms or
portals that would be able to provide real time
information on regulations, trade procedures and
means of payment

23. Contribution & Recommendations
This research contributes to the trade diversion theory by indicating that negative impacts of NTBs is factor why members in
a particular union trade less among themselves.
Theoretical contribution
These impacts increase the trade cost and or hinder market access hence pushing businesses to trade out of the union.
The study also examines the role of trade facilitation; applying the trade cost and trade facilitation theory.
As recommended by most respondents' trade facilitation measures towards reducing these NTBs enhance seamless
movement of goods and services across borders.
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24. Contribution & Recommendation
Mutual Recognition of Agreements (MRA) to establish a harmonized regulatory framework for conformity assessment
procedures.
Recommendations
Becoming more transparent by using online portals to publish regulations and requirements for international trade
Adhering to the existing trade protocols (ETLS) in the ECOWAS region.
Standardizing and streamling documentation at ECOWAS level
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Sensitization of the stakeholders at country and ECOWAS levels

25. Limitation of Research
Limited Generalizability
The study focuses on two countries and limits its
applicability to other countries.
Unfair Representation
There should also be a fair representation of
respondents such that one country does not have more
respondents than the other as this would ensure that
issues identified are not just one way since trade is
done in two -way.
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26. Further Research
Mixed Approach
Further studies can adopt a quantitative approach to test the
established relationship between NTBs and International business in
ECOWAS.
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27. ‹#›
THANK YOU

28. REFERENCES
❖ Adewuyi, A., and Olayiwola, M. (2020). Impact of Non-Tariff Barriers on International Trade in West Africa: Evidence From Ghana and Nigeria. Journal of Economic
Development and Policy, 7(2), 21-32.
❖ Boso, N., Adeleye, I., Ibeh, K., and Chizema, A. (2019). The Internationalization of African Firms: Opportunities, Challenges, and Risk. Thunderbird International
Business Review, 61(1), 5-12.
❖ Deardorff, A. V., & Stern, R. M. (1998). Measurement of nontariff barriers (Vol. 179). University of Michigan Press.
❖ Findlay, R. (1991). Comparative advantage. The World of Economics, 99-107.
❖ Jacob, Viner. (1950) The Customs Union Issue. Retrieved June 06, 2023
❖ Kahenu, S. (2014). Non-Tariff Barriers in EAC Customs Union: Implications For Trade in Manufactured Goods in Kenya. Nairobi: University of Nairobi. Retrieved,
March 16, 2023. Krugman, P. (1987). Is Free Trade Passe? Economic Perspective, 1(2), 131-144
❖ Milanzi, M. (2012). The Impact of Barriers on Export Behaviour of a Developing Country Firms: Evidence From Tanzania. International Journal of Business and
Management., 7(3), 10-21.
❖ Mpinganjira, M. (2011). Perceived Benefits and Barriers to Export Involvement: Insights from Non-Exporters. African Journal of Business Management., 5(2), 9116-
9124.
❖ Subedi, Khemraj. (2022). International Business: Concept Definition and Characteristics. Retrieved June 16, 2023
❖ Staiger, R. W. (2012). Non-tariff measures and the WTO.
❖ Portugal-Perez, A., & Wilson, J. S. (2009). Why trade facilitation matters to Africa1. World Trade Review, 8(3), 379-416.
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29. CONCEPTUAL FRAMEWORK
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Non-Tariff Barriers
Internationalization of Businesses