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Do trade preferential agreements enhance the exports of developing countries? Evidence from the EU GSP

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  • Aiello, Francesco
  • Demaria, Federica

Abstract

The EU grants preferential access to its imports from developing countries under several trade agreements. The widest arrangement, in terms of country and product coverage, is the Generalised System of Preferences (GSP) through which, since 1971, virtually all developing countries have received preferential treatment when exporting to world markets. This paper evaluates the impact of GSP in enhancing developing countries’ exports to EU markets. It is based on the estimation of a gravity model for a sample of 769 products exported from 169 countries to EU over the period 2001-2004. While, from an econometric point of view, the estimation methods take into account unobservable country heterogeneity as well as the potential selection bias which zero-trade values pose, the empirical setting considers an explicit measure of trade preferences, the margin of preferences. The analysis offers new empirical evidence that the impact of GSP on developing countries’ agricultural exports to the EU is positive.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 20093.

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Date of creation: 15 Dec 2009
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Handle: RePEc:pra:mprapa:20093

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Keywords: Trade Preferences; Developing Countries; Agricultural Trade;

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Cited by:
  1. Emiliano Magrini & Pierluigi Montalbano & Silvia Nenci, 2013. "Are the EU trade preferences really effective? A Generalized Propensity Score evaluation of the Southern Mediterranean Countries' case in agriculture and fishery," Working Papers, Sapienza University of Rome, DISS 2/13, Sapienza University of Rome, DISS.
  2. Cipollina, Maria & Laborde, David & Salvatici, Luca, 2013. "Do Preferential Trade Policies (Actually) Increase Exports? An analysis of EU trade policies," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C., Agricultural and Applied Economics Association 150177, Agricultural and Applied Economics Association.

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