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Caribbean Bananas


Author Info

  • Paul Cashin
  • Montfort Mlachila
  • Cleary Haines


This paper examines the macroeconomic effects of the erosion of trade preferences, with a focus on the export of Caribbean bananas to Europe. Estimates are made of the magnitude of implicit assistance provided over a period of three decades to eastern Caribbean countries through banana trade preferences. The value of such assistance rose until the early 1990s, and has declined precipitously since then. Using vector autoregressive analysis, the paper finds that changes in the level of implicit assistance have had a considerable macroeconomic impact, especially on Caribbean real GDP growth.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 10/59.

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Length: 42
Date of creation: 01 Mar 2010
Date of revision:
Handle: RePEc:imf:imfwpa:10/59

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Keywords: Bananas; Agricultural exports; Agricultural production; Economic models; Export prices; Terms of trade; Trade policy; Trade preferences; preference erosion; trade liberalization; exporters; exporting countries; agricultural trade; export volumes; export markets; total export; export of goods; preferential access; preferential trade; agricultural trade liberalization; export values; tariff reductions; global trade; import price; exports of goods; export unit; exporting country; preferential trade arrangements; total exports; world price; world trade; export subsidies; export earnings; exporting company; world trade organization; trade arrangements; tariff preferences; tariff reduction; trade policies; trade reforms; tariff rate; mfn tariffs; multilateral trade; importing countries; tariff protection; export market; preference-granting country; export revenue; domestic price; export volume; export price; commodity prices; preferential tariffs; merchandise export; impact of trade; trade reform; tariff levels; fair trade; export price data; merchandise exports; free trade; multilateral liberalization; trading arrangements; trading system; export quality; competitive price; import taxes; applied tariff; preferential trading; global welfare; quota-free access; world markets; export receipts; tariff equivalent; tariff peaks; product differentiation; price supports; world economy; preferential agreements; global markets; trade wars; multilateral trade liberalization; transition economies; duty free; preferential trading arrangements; unskilled labor; export losses; multilateral trade reform; protection system; output growth; trade war; preferential arrangements; trade round; export revenues; exporter; agricultural trade reform; multilateral system; importing country; global trade analysis; trade volumes; global trade liberalization; dynamic impact; current account balance; trade losses; rules of origin; domestic prices; international trade;

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