The Effects of Trade Barriers on Export Diversification For Developing Economies: A Case Study of South Africa, Nigeria, Kenya, And Brazil

Abstract

This study examines the relationship between trade barriers and export diversification in Brazil, Kenya, Nigeria, and South Africa from 2000 to 2022. Using panel data, the study employs a fixed and random effects model to investigate how tariffs, trade openness, and export share affect export diversification for developing economies. Results show that weighted tariffs increase export-concentration while trade openness promotes diversification. Export as a share of GDP raises concentration, which reflects commodity dependency. The study’s findings highlight that trade barriers matter mostly in export-concentrated economies, which highlights the need for targeted policies to promote export diversification and economic resilience.