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The direct and relative effects of preferential market access

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  • Fugazza, Marco
  • Nicita, Alessandro

Abstract

The proliferation of preferential trade agreements has resulted in a complex system of preferences in which market access conditions are often discriminatory. In this paper we investigate how market access conditions have evolved between 2000 and 2009, and how this has affected international trade. Our results show that the proliferation of preferential access has increased bilateral trade not only due to lower tariffs but also because preferential access often resulted in higher preferential margins vis-à-vis foreign competitors. The results also indicate that the evolution of the system of preferences has been disadvantageous for countries that did not actively engage in forming new trade agreements.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of International Economics.

Volume (Year): 89 (2013)
Issue (Month): 2 ()
Pages: 357-368

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Handle: RePEc:eee:inecon:v:89:y:2013:i:2:p:357-368

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Web page: http://www.elsevier.com/locate/inca/505552

Related research

Keywords: Gravity model; Trade policy; International Trade Flows; Tariffs;

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Citations

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Cited by:
  1. Anne-Célia Disdier & Lionel Fontagné & Mondher Mimouni, 2013. "Tariff Liberalization and Trade Integration of Emerging Countries," Working Papers 2013-36, CEPII research center.
  2. Moser, Christoph & Rose, Andrew K, 2011. "Who Benefits from Regional Trade Agreements? The View from the Stock Market," CEPR Discussion Papers 8566, C.E.P.R. Discussion Papers.
  3. Marco Fugazza & Alain McLaren, 2013. "Market Access, Export performance and Survival: Evidence from Peruvian Firms," Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva 13021, Institut d'Economie et Econométrie, Université de Genève.
  4. Lahiri Sajal & Peri Silva, 2013. "Potential Pareto-improving Move towards Most Favored Nation Tariffs," Development Working Papers 348, Centro Studi Luca d\'Agliano, University of Milano, revised 24 Apr 2013.

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