The European Union preferential trade with developing countries. Total trade restrictiveness and the case of sugar
AbstractPreferential trade agreements are a central issue in the multilateral trade liberalization process. The extent to which such agreements are effective in improving market access for developing and developed countries is important because trade liberalization results in eroding their value to the beneficiary countries, expressed as export revenue. This paper focuses on the estimation of a theoretically founded bilateral aggregated measure of trade restrictiveness, the Mercantilistic Trade Restrictiveness Index, by means of a general equilibrium model, in order to measure the effectiveness of preferences granted by the European Union. We also develop an empirical model structure, comprising a partial equilibrium model for the sugar market and a gravity model, in order to replicate least developed countries bilateral trade with Europe, and to estimate the erosion in the value of preferences granted to African, Caribbean and Pacific countries and to least developed countries brought about by changes in the Common Market Organization for sugar and the Everything but Arms initiative. The results highlight the importance of sugar in determining the degree of trade restrictiveness faced by developing countries. Sugar sector policy reform in Europe is expected to result in a significant reduction in the African Caribbean and Pacific countries’ export revenue, whilst the initial impact on least developed countries may be limited, but increasing in the medium run.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Molise, Dept. EGSeI in its series Economics & Statistics Discussion Papers with number esdp07037.
Length: 28 pages
Date of creation: 26 Apr 2007
Date of revision:
preferential trade; sugar; policy reform;
Find related papers by JEL classification:
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
- C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
This paper has been announced in the following NEP Reports:
- NEP-AGR-2007-05-12 (Agricultural Economics)
- NEP-ALL-2007-05-12 (All new papers)
- NEP-EEC-2007-05-12 (European Economics)
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.:
- James E. Anderson & Eric van Wincoop, 2004.
NBER Working Papers
10480, National Bureau of Economic Research, Inc.
- Jonathan Eaton & Samuel Kortum, 2002. "Technology, Geography, and Trade," Econometrica, Econometric Society, vol. 70(5), pages 1741-1779, September.
- Jean-Christophe Bureau & Luca Salvatici, 2001.
"Agricultural Trade Restrictiveness in the European Union and the United States,"
Food and Agricultural Policy Research Institute (FAPRI) Publications
01-wp277, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
- Jean-Christophe Bureau & Luca Salvatici, 2005. "Agricultural trade restrictiveness in the European Union and the United States," Agricultural Economics, International Association of Agricultural Economists, vol. 33(s3), pages 479-490, November.
- Jean-Christophe Bureau & Luca Salvatici, 2004. "Agricultural trade restrictiveness in the European Union and the United States," Working Papers 2004/03, INRA, Economie Publique.
- Jean-Christophe Bureau & Luca Salvatici, 2005. "Agricultural trade restrictiveness in the European Union and the United States," The Institute for International Integration Studies Discussion Paper Series iiisdp059, IIIS.
- Jean-Christophe Bureau & Luca Salvatici, 2001. "Agricultural Trade Restrictiveness in the European Union and the United States," Center for Agricultural and Rural Development (CARD) Publications 01-wp277, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-16, March.
- Brenton, Paul, 2003. "Integrating the least developed countries into the world trading system : the current impact of EU preferences under everything but arms," Policy Research Working Paper Series 3018, The World Bank.
- James E. Anderson & Eric van Wincoop, 2000.
"Gravity with Gravitas: A Solution to the Border Puzzle,"
Boston College Working Papers in Economics
485, Boston College Department of Economics.
- James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
- James E. Anderson & Eric van Wincoop, 2001. "Gravity with Gravitas: A Solution to the Border Puzzle," NBER Working Papers 8079, National Bureau of Economic Research, Inc.
- Anderson, James E & Neary, J Peter, 1992.
"A New Approach to Evaluating Trade Policy,"
CEPR Discussion Papers
683, C.E.P.R. Discussion Papers.
- Baier, Scott L. & Bergstrand, Jeffrey H., 2001. "The growth of world trade: tariffs, transport costs, and income similarity," Journal of International Economics, Elsevier, vol. 53(1), pages 1-27, February.
- Arellano, Manuel & Bond, Stephen, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Wiley Blackwell, vol. 58(2), pages 277-97, April.
- Tom Doan, . "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
- repec:rus:hseeco:123712 is not listed on IDEAS
- Richard Blundell & Steve Bond & Frank Windmeijer, 2000. "Estimation in dynamic panel data models: improving on the performance of the standard GMM estimator," IFS Working Papers W00/12, Institute for Fiscal Studies.
- Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-54, July.
- Steve Bond, 2002. "Dynamic panel data models: a guide to microdata methods and practice," CeMMAP working papers CWP09/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Manchin, Miriam, 2005. "Preference utilization and tariff reduction in European Union imports from African, Caribbean, and Pacific countries," Policy Research Working Paper Series 3688, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Claudio Lupi).
If references are entirely missing, you can add them using this form.