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A matching approach to study the impact of agoa on Sub-Saharan African countries

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  • Cooke, Edgar F. A.

Abstract

The impact of the USA's agoa preferences on SSA countries is studied using a matching approach. The results indicate that agoa beneficiaries have exported less to the USA compared to their matched controls. However, this has not been the case for their exports to the EU which has seen a higher share of exports relative to the control group. In addition, the results show that, in the short--run the SSA countries reduce exports to the EU in order to take advantage of agoa. Thus, due to capacity constraints these countries switched exports from the EU to the USA market. China, OECD, European and other developed countries are excluded from the control group used in the analysis. We therefore do not expect the strengths of these economies to be driving any of our results

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 34670.

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Date of creation: 13 Nov 2011
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Handle: RePEc:pra:mprapa:34670

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Keywords: African Growth and Opportunity Act; Africa; Trade preferences; Matching;

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  1. Garth Frazer & Johannes Van Biesebroeck, 2007. "Trade Growth under the African Growth and Opportunity Act," NBER Working Papers 13222, National Bureau of Economic Research, Inc.
  2. Nouve, Kofi & Staatz, John M., 2003. "The African Growth And Opportunity Act And The Latent Agricultural Export Response In Sub-Saharan Africa," 2003 Annual meeting, July 27-30, Montreal, Canada 21917, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. Guido Imbens, 2000. "Efficient Estimation of Average Treatment Effects Using the Estimated Propensity Score," Econometric Society World Congress 2000 Contributed Papers 1166, Econometric Society.
  4. Bedassa Tadesse & Bichaka Fayissa, 2008. "The impact of African growth and opportunity act (Agoa) on U.S. imports from Sub-Saharan Africa (SSA)," Journal of International Development, John Wiley & Sons, Ltd., vol. 20(7), pages 920-941.
  5. Marco Caliendo & Sabine Kopeinig, 2005. "Some Practical Guidance for the Implementation of Propensity Score Matching," Discussion Papers of DIW Berlin 485, DIW Berlin, German Institute for Economic Research.
  6. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, vol. 62(2), pages 467-75, March.
  7. Lederman, Daniel & Ozden, Caglar, 2005. "Geopolitical interests and preferential access to U.S. markets," Policy Research Working Paper Series 3531, The World Bank.
  8. Heckman, James J & Ichimura, Hidehiko & Todd, Petra E, 1997. "Matching as an Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Wiley Blackwell, vol. 64(4), pages 605-54, October.
  9. Yasar, Mahmut & Rejesus, Roderick M., 2005. "Exporting status and firm performance: Evidence from a matched sample," Economics Letters, Elsevier, vol. 88(3), pages 397-402, September.
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