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Small flows, compliance costs and trade preferences: The case of EU imports from African LDCs

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  • Nilsson, Lars
  • Dotter, Caroline
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    Abstract

    Previous work has shown that a significant number of preference eligible goods are imported into the EU from developing countries at relatively small values and that the rate of preference utilisation of these imports are low and in many cases zero. This fact is unobserved in the aggregate figures because large flows have high utilisation rates, thereby pushing up the average preference utilisation rate. This paper examines this phenomenon further by using monthly data on EU imports from African LDCs at the lowest level of (publicly) available aggregation thereby coming close to transaction level data. It identifies the average value of preference eligible imports, utilising and not utilising preferences, by country and product category and test their empirical relevance for explaining the African LDCs' preference utilisation rates. --

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    File URL: http://dx.doi.org/10.5018/economics-ejournal.ja.2012-45
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    Bibliographic Info

    Article provided by Kiel Institute for the World Economy in its journal Economics: The Open-Access, Open-Assessment E-Journal.

    Volume (Year): 6 (2012)
    Issue (Month): 45 ()
    Pages: 1-29

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    Handle: RePEc:zbw:ifweej:201245

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    Related research

    Keywords: trade preferences; preference utilisation; small trade flows; compliance costs; LDCs;

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    References

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    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    1. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, April.
    2. Lars Nilsson, 2011. "Small Trade Flows And Preference Utilisation: The Case Of The European Union," South African Journal of Economics, Economic Society of South Africa, vol. 79(4), pages 392-410, December.
    3. Miriam Manchin, 2006. "Preference Utilisation and Tariff Reduction in EU Imports from ACP Countries," The World Economy, Wiley Blackwell, vol. 29(9), pages 1243-1266, 09.
    4. repec:wii:bpaper:bowp:027 is not listed on IDEAS
    5. Persson, Maria & Wilhelmsson, Fredrik, 2006. "Assessing the Effects of EU Trade Preferences for Developing Countries," Working Papers 2006:4, Lund University, Department of Economics, revised 26 Jun 2006.
    6. Mariarosaria Agostino & Federica Demaria & Francesco Trivieri, 2010. "Non-Reciprocal Trade Preferences and the Role of Compliance Costs in the Agricultural Sector: Exports to the EU," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(3), pages 652-679.
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