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The Doha development round and Africa: partial and general equilibrium analyses of tariff preference erosion

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Author Info
Mohamed Hedi Bchir
Stephen N. Karingi
Andrew Mold
Patrick N. Osakwe
Mustapha Sadni Jallab

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Abstract

Erosion of trade preferences currently being enjoyed by the least developed countries (LDCs) and some developing countries remains an important area in the ongoing trade negotiations. The different positions regarding the preference erosion question besides being informed by political economy considerations are also founded on empirical results of this particular question. But does the methodology used for the empirical analysis matter? In this article, the importance of preference erosion due to MFN liberalization on agriculture is analyzed. Drawing from the potential complementary strengths in triangulation, the article uses both partial and general equilibrium analyses. The article shows that the ranking of preference erosion as an issue of policy concern is influenced by the empirical methodology adopted. However, irrespective of the rank, the article concludes that preference erosion is an important issue not only in terms of welfare, but also as it has impacts on incomes for preference-receiving countries. Copyright 2007 International Association of Agricultural Economists.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1574-0862.2007.00253.x
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Article provided by International Association of Agricultural Economists in its journal Agricultural Economics.

Volume (Year): 37 (2007)
Issue (Month): s1 (December)
Pages: 287-295
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Handle: RePEc:bla:agecon:v:37:y:2007:i:s1:p:287-295

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  1. Limao, Nuno & Olarreaga, Marcelo, 2005. "Trade preferences to small developing countries and the welfare costs of lost multilateral liberalization," Policy Research Working Paper Series 3565, The World Bank. [Downloadable!]
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  2. Francois, Joseph & Hoekman, Bernard & Manchin, Miriam, 2005. "Preference Erosion and Multilateral Trade Liberalization," CEPR Discussion Papers 5153, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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