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The Doha development round and Africa: partial and general equilibrium analyses of tariff preference erosion

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  • Mohamed Hedi Bchir
  • Stephen N. Karingi
  • Andrew Mold
  • Patrick N. Osakwe
  • Mustapha Sadni Jallab

Abstract

Erosion of trade preferences currently being enjoyed by the least developed countries (LDCs) and some developing countries remains an important area in the ongoing trade negotiations. The different positions regarding the preference erosion question besides being informed by political economy considerations are also founded on empirical results of this particular question. But does the methodology used for the empirical analysis matter? In this article, the importance of preference erosion due to MFN liberalization on agriculture is analyzed. Drawing from the potential complementary strengths in triangulation, the article uses both partial and general equilibrium analyses. The article shows that the ranking of preference erosion as an issue of policy concern is influenced by the empirical methodology adopted. However, irrespective of the rank, the article concludes that preference erosion is an important issue not only in terms of welfare, but also as it has impacts on incomes for preference-receiving countries. Copyright 2007 International Association of Agricultural Economists.

Suggested Citation

  • Mohamed Hedi Bchir & Stephen N. Karingi & Andrew Mold & Patrick N. Osakwe & Mustapha Sadni Jallab, 2007. "The Doha development round and Africa: partial and general equilibrium analyses of tariff preference erosion," Agricultural Economics, International Association of Agricultural Economists, vol. 37(s1), pages 287-295, December.
  • Handle: RePEc:bla:agecon:v:37:y:2007:i:s1:p:287-295
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    References listed on IDEAS

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    1. William R. Cline, 2004. "Trade Policy and Global Poverty," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 379.
    2. Joseph Francois & Bernard Hoekman & Miriam Manchin, 2006. "Preference Erosion and Multilateral Trade Liberalization," World Bank Economic Review, World Bank Group, vol. 20(2), pages 197-216.
    3. Nuno Limão & Marcelo Olarreaga, 2006. "Trade Preferences to Small Developing Countries and the Welfare Costs of Lost Multilateral Liberalization," World Bank Economic Review, World Bank Group, vol. 20(2), pages 217-240.
    4. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685.
    5. Douglas C. Lippoldt & Przemyslaw Kowalski, 2005. "Trade Preference Erosion: Expanded Assessment of Countries at Risk of Welfare Losses," OECD Trade Policy Papers 20, OECD Publishing.
    6. Mohamed Hedi Bchir & Yvan Decreux & Jean-Louis Guerin & Sebastien Jean, 2002. "MIRAGE, un modele d'equilibre general calculable pour l'evaluation des politiques commerciales," Economie Internationale, CEPII research center, issue 89-90, pages 109-153.
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