Effects of Imposing Import Tariffs on a Country's Economic Growth-A case study on Malawi

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There has been an ongoing debate as to whether there is any relationship between imposition of import tariffs and economic growth in developing countries.Thus,this paper aims at empirically and theoretically analysing the effects that imposition of import tariffs have on economic growth in Malawi over the period of 1982–2011.This relationship is examined using the Autoregressive Moving Average (ARIMA) model which will test the effect of an implemented import tariff policy on GDP growth.  The Autoregressive Moving Average regression results reveal that there is a relationship between imposed import tariffs and economic growth in Malawi,that is,a reduction in the average import tariff rate leads to a rise in GDP growth.These results strongly support the role,import trade can play in Malawi’s economic development.This means that by adopting good import tariff policies,Malawi will eventually boost domestic production hence the GDP growth.
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