IDEAS home Printed from https://ideas.repec.org/a/bla/reviec/v19y2011i4p763-775.html

The Dark Side of the Generalized System of Preferences

Author

Listed:
  • Bernhard Herz
  • Marco Wagner

Abstract

The Generalized System of Preferences (GSP) was established to promote the exports of low-income countries to industrialized countries in order to support their economic growth and development. However, the design of these schemes is rather complex and the effects of GSP have been found to be controversial. While previous studies solely analyzed preferential agreements of individual granting countries separately, implying a one-sided perspective, we take a general view and investigate the overall and dynamic effects common to the various GSP schemes in order to provide generalized recommendations for economic policy. In our empirical analysis, based on an extensive dataset covering most of world trade, we find that GSP tends to foster developing countries' exports in the short-run, but hampers them in the long-run. Also, GSP granting countries are able to promote their own exports initially, while in the long-run their exports decrease. Economically advanced GSP recipients 1 are more likely to benefit from GSP than less advanced countries. Taken together, GSP does not seem to be a suitable instrument to promote sustainable economic growth and development of low-income countries.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Bernhard Herz & Marco Wagner, 2011. "The Dark Side of the Generalized System of Preferences," Review of International Economics, Wiley Blackwell, vol. 19(4), pages 763-775, September.
    • Handle: RePEc:bla:reviec:v:19:y:2011:i:4:p:763-775
    DOI: j.1467-9396.2011.00980.x
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/j.1467-9396.2011.00980.x
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/j.1467-9396.2011.00980.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    More about this item

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:reviec:v:19:y:2011:i:4:p:763-775. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0965-7576 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.