SOUTH AFRICAN JOURNAL OF ECONOMICS, cilt.90, sa.2, ss.149-174, 2022 (SSCI)
This study uses annual customs transaction data (HS six-digit) for the period 2006-2018 to analyse the impact of average tariffs on the export sales, margins and survival of firms in Kenya. Results from the fixed-effects regression model reveal that a 1% increase in tariffs reduces exports by 0.181% and the intensive margin by 0.183% but does not affect the extensive margin. Meanwhile, the cloglog fixed-effects duration model reveals that a 1% increase in tariffs reduces export survival by 2.7%. This suggests that cutting tariffs, possibly through trade agreements, can help firms and countries improve their export performance.