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Market Access in Global and Regional Trade

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Author Info
Thierry Mayer
Soledad Zignago

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Abstract

This paper develops a method of assessment of market access difficulties with an application to manufactured trade patterns between developing and developed countries. The method also offers a renewal of the assessment of the impact of regional trading arrangements. We use a micro-founded gravity-type model of trade patterns to estimate the impact of national borders on revealed access to Northern markets by Southern producers. This is made possible by the construction and use of a new database. Ceteris paribus, in the nineties, a rich country imports on average 281 times more from itself than from a developing country, only 61 times more when importing from another rich country. Results reveal that those difficulties faced by developing countries’ exporters in accessing developed countries’ consumers are furthermore higher than the reciprocal. Currently, the tariff equivalents of those border effects differ by around 31 percentage points. Those difficulties in Northern market access have however experienced a noticeable fall since the mid seventies. While tariffs still have in general an influence on trade patterns, our estimates suggest that they are not an important component of market access difficulties faced by Southern exporters on Northern markets. The EU, CUSA/NAFTA, ASEAN/AFTA and MERCOSUR agreements all tend to reduce the estimated degree of market fragmentation within these zones, with an expected ranking between the respective impact of these agreements.

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Paper provided by CEPII research center in its series Working Papers with number 2005-02.

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Date of creation: Jan 2005
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Handle: RePEc:cii:cepidt:2005-02

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Related research
Keywords: market access; North-South trade; regional integration; border effects; gravity; international trade; border effects; gravity model; developing countries; industrialized countries; tariffs; trade arrangement;

Find related papers by JEL classification:
F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
F15 - International Economics - - Trade - - - Economic Integration

This paper has been announced in the following NEP Reports:

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  1. Massimo Del Gatto & G. Mion & GIP. Ottaviano, 2007. "Trade Integration, Firm Selection and the Costs of Non-Europe," Working Paper CRENoS 200703, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia. [Downloadable!]
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  2. Del Gatto, Massimo & Ottaviano, Gianmarco Ireo Paolo & Pagnini, Marcello, 2007. "Openness to Trade and Industry Cost Dispersion: Evidence from a Panel of Italian Firms," CEPR Discussion Papers 6336, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  3. Chevassus-Lozza, Emmanuelle & Majkovic, Darja & Persillet, Vanessa & Unguru, Manuela, 2005. "Technical Barriers to Trade in the European Union : Importance for the New EU Members. An Assessment for Agricultural and Food Products," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24621, European Association of Agricultural Economists. [Downloadable!]
  4. Olper, Alessandro & Raimondi, Valentina, 2005. "Market Access Asymmetry in Food Trade among Quad Countries," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24596, European Association of Agricultural Economists. [Downloadable!]
  5. Karen Crabb? & Michel Beine, 2009. "Trade, Institutions and Export Specialization," LICOS Discussion Papers 23409, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven. [Downloadable!]
  6. Fadinger, Harald & Fleiss, Pablo, 2008. "Trade and Sectoral Productivity," MPRA Paper 6938, University Library of Munich, Germany. [Downloadable!]
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  7. G. Corcos & Massimo Del Gatto & G. Mion & GIP. Ottaviano, 2007. "Productivity and Firm Selection: Intra- vs International Trade," Working Paper CRENoS 200706, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia. [Downloadable!]
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  8. Alessandro Olper & Valentina Raimondi, 2007. "Patterns and Determinants of International Trade Costs in the Food Industry," LICOS Discussion Papers 18807, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven. [Downloadable!]
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  9. Olper, Alessandro & Raimondi, Valentina, 2006. "Explaining National Border Effects in the Quad Food Trade," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25467, International Association of Agricultural Economists. [Downloadable!]
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  10. Alessandro Olper & Valentina Raimondi, 2008. "Market Access Asymmetry in Food Trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 144(3), pages 509-537, October. [Downloadable!] (restricted)
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  11. Nicolas Berman, 2009. "Financial Crises and International Trade: The Long Way to Recovery," Economics Working Papers ECO2009/23, European University Institute. [Downloadable!]
  12. Gianmarco Ottaviano & Daria Taglioni & Filippo di Mauro, 2007. "Deeper, wider and more competitive? Monetary integration, eastern enlargement and competitiveness in the European Union," Working Paper Series 847, European Central Bank. [Downloadable!]
  13. Emlinger, Charlotte & Lozza, Emmanuelle Chevassus & Jacquet, Florence, 2006. "EU market access for Mediterranean fruit and vegetables: A gravity model assessment," 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece 10098, European Association of Agricultural Economists. [Downloadable!]
  14. Olper, Alessandro & Raimondi, Valentina, 2005. "Access to OECD Agricultural Market: A Gravity Border Effect Approach," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24543, European Association of Agricultural Economists. [Downloadable!]
  15. 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. [Downloadable!]
  16. Raymond Fisman & Edward Miguel, 2006. "Cultures of Corruption: Evidence From Diplomatic Parking Tickets," NBER Working Papers 12312, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  17. Antoine Berthou, 2008. "An investigation on the effect of real exchange rate movements on OECD bilateral exports," Working Paper Series 920, European Central Bank. [Downloadable!]
  18. Nelly Exbrayat, 2008. "The Impact of Trade Integration and Agglomeration Economies on Tax Interactions : Evidence from OECD Countries," Post-Print hal-00270067_v1, HAL. [Downloadable!]
  19. Damiaan Persyn, 2008. "Trade as a Wage Disciplining Device," LICOS Discussion Papers 21008, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven. [Downloadable!]
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  20. Raymond Fisman & Shang-Jin Wei, 2007. "The Smuggling of Art, and the Art of Smuggling: Uncovering the Illicit Trade in Cultural Property and Antiques," NBER Working Papers 13446, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  21. Cardamone, Paola, 2007. "A survey of the assessments of the effectiveness of Preferential Trade Agreements using gravity models," Working Papers 7282, TRADEAG - Agricultural Trade Agreements. [Downloadable!]
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