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Rethinking Trade Preferences: How Africa Can Diversify its Exports

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Author Info

  • Collier, Paul
  • Venables, Anthony J.

Abstract

This paper argues that the contribution of trade preferences to economic development needs to be reappraised in light of the growth of globalized trade in manufactures. Trade preferences may be able to act as a catalyst for manufacturing exports, leading to rapid growth in exports and employment. To do so, preferences need to be designed to be consistent with international trade in fragmented ‘tasks’ (as opposed to complete products) and need to be open to countries with sufficient levels of complementary inputs such as skills and infrastructure. Recent experience with the African Growth and Opportunities Act shows that, in the right conditions, Sub-Saharan African countries have had large manufacturing export supply response to trade preferences.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6262.

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Date of creation: Apr 2007
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Handle: RePEc:cpr:ceprdp:6262

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Related research

Keywords: AGOA; EBA; export diversification; rules of origin; Trade preferences;

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References

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  1. Markusen, James R. & Venables, Anthony J., 2007. "Interacting factor endowments and trade costs: A multi-country, multi-good approach to trade theory," Journal of International Economics, Elsevier, vol. 73(2), pages 333-354, November.
  2. Gordon H. Hanson, 2003. "What Has Happened to Wages in Mexico since NAFTA?," NBER Working Papers 9563, National Bureau of Economic Research, Inc.
  3. Cadot, Olivier & Estevadeordal, Antoni & Suwa-Eisenmann, Akiko & Verdier, Thierry (ed.), 2006. "The Origin of Goods: Rules of Origin in Regional Trade Agreements," OUP Catalogue, Oxford University Press, number 9780199290482.
  4. Arndt, Sven W. & Kierzkowski, Henryk (ed.), 2001. "Fragmentation: New Production Patterns in the World Economy," OUP Catalogue, Oxford University Press, number 9780199243310.
  5. Arvind Subramanian & Devesh Roy, 2001. "Who Can Explain the Mauritian Miracle: Meade, Romer, Sachs, or Rodrik?," IMF Working Papers 01/116, International Monetary Fund.
  6. Gene M. Grossman & Esteban Rossi-Hansberg, 2006. "The rise of offshoring: it's not wine for cloth anymore," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 59-102.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Did AGOA work? Identification and export incentives
    by jdingel in Trade diversion on 2010-08-15 14:55:38
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Cited by:
  1. repec:spo:wpecon:info:hdl:2441/8305 is not listed on IDEAS
  2. Claire Delpeuch & Patrick Messerlin, 2008. "Sortir de l’impasse des APE : pour une initiative des pays ACP à l’OMC," Sciences Po publications info:hdl:2441/8305, Sciences Po.
  3. Yoshino, Yutaka, 2008. "Domestic constraints, firm characteristics, and geographical diversification of firm-level manufacturing exports in Africa," Policy Research Working Paper Series 4575, The World Bank.
  4. Brenton, Paul & Newfarmer, Richard & Walkenhorst, Peter, 2009. "Avenues for Export Diversification: Issues for Low-Income Countries," MPRA Paper 22758, University Library of Munich, Germany.
  5. Pierre-Louis Vezina & Lorenzo Rotunno & Zheng Wang, 2012. "The rise and fall of (Chinese) African apparel exports," Economics Series Working Papers WPS/2012-12, University of Oxford, Department of Economics.
  6. Dennis, Allen & Shepherd, Ben, 2007. "Trade costs, barriers to entry, and export diversification in developing countries," Policy Research Working Paper Series 4368, The World Bank.
  7. Edwards, Lawrence & Rankin, Neil A. & Schöer, Volker, 2008. "South African exporting firms: What do we know and what should we know?," MPRA Paper 16906, University Library of Munich, Germany.
  8. Jean Claude Berthélemy, 2011. "Working Paper 129 - China’s Engagement and Aid Effectiveness in Africa," Working Paper Series 295, African Development Bank.
  9. Kubo, Koji, 2013. "Myanmar's non-resource export potential after the lifting of economic sanctions : a gravity model analysis," IDE Discussion Papers 426, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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