Document Type

Original Article

Subject Areas

African Trade


Import tariff, Import revenue, Import misinvoicing, System GMM, Sub-Saharan Africa


This study investigates the effect of import tariffs on import revenue and misinvoicing in Sub-Saharan Africa (SSA). It employs the System Generalized Method of Moments (GMM) panel technique, using 37 selected SSA countries from 2003 to 2017. Results from the analysis show that tariff positively affects import revenue. While raising import tariffs boosts import revenue, doing so above a certain threshold has a negative impact on import revenue. The results also reveal that import tariff positively impacts import misinvoicing, suggesting that an increase in the tariff rate induces importers to increase import under-invoicing. Other factors, such as an increase in the interest rate and control of Corruption, reduce import misinvoicing, whereas political stability improves import misinvoicing. Also, improving real GDP growth, regulatory quality, inflation, and trade liberalization improves import revenue. These findings have important policy implications. Notably, more effective institutional and economic governance, as opposed to increases in tariff rates, boosts import revenue and decreases trade misinvoicing.

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