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The effect of the GSP scheme on the European Union’s horticultural imports from SADC member countries: A Triple-Difference Approach

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  • Lubinga, Moses H.
  • Potelwa, Yolanda
  • Ntshangase, Thandeka
  • Nyondo, Bonani
  • Ngqangeni, Simphiwe

Abstract

This work evaluates the effect of the Generalised System of Preferences (GSP1) on EU’s fruit imports from Southern African Development Community (SADC) member countries during 2005-2014, using a new and advanced micro-econometric tool known as the Triple-Difference estimator. The estimator is advantageous given that it is robust to policy endogeneity and it uses a very flexible benchmark to which the intensive margin and extensive margin of trade performance are compared. Two preference margin measures are used as proxies for the preferential treatment granted to SADC member countries by the EU. Furthermore, highly disaggregated data at HS 6-Digit level, for 12 SADC member countries and 27 EU member states are used for the analysis. The analysis employed takes into consideration of zero-trade flows. Empirical results suggest that the EU-GSP scheme generally has a significant positive impact on EU’s fruit imports from SADC member countries. Notably, the Least Developed Countries (LDCs) benefited more from the scheme as compared to the non-LDCs.

Suggested Citation

  • Lubinga, Moses H. & Potelwa, Yolanda & Ntshangase, Thandeka & Nyondo, Bonani & Ngqangeni, Simphiwe, 2016. "The effect of the GSP scheme on the European Union’s horticultural imports from SADC member countries: A Triple-Difference Approach," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246449, African Association of Agricultural Economists (AAAE).
    • Handle: RePEc:ags:aaae16:246449
    DOI: 10.22004/ag.econ.246449
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    References listed on IDEAS

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    1. Charlotte Emlinger & Florence Jacquet & Emmanuelle Chevassus Lozza, 2008. "Tariffs and other trade costs: assessing obstacles to Mediterranean countries' access to EU-15 fruit and vegetable markets," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 35(4), pages 409-438, December.
    2. Besley, Timothy & Case, Anne, 2000. "Unnatural Experiments? Estimating the Incidence of Endogenous Policies," Economic Journal, Royal Economic Society, vol. 110(467), pages 672-694, November.
    3. Maria Cipollina & Luca Salvatici, 2010. "The trade impact of European Union agricultural preferences," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 13(1), pages 87-106.
    4. Paola Cardamone, 2011. "The effect of preferential trade agreements on monthly fruit exports to the European Union," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 38(4), pages 553-586, October.
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    Cited by:

    1. Arsalan Ahmed & Qi Jian Hong & Hassan Tahir, 2021. "Analysis of Pakistan–China FTA by propensity score matching with difference in differences," SN Business & Economics, Springer, vol. 1(7), pages 1-29, July.

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    Keywords

    Consumer/Household Economics; Crop Production/Industries; International Relations/Trade;
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