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A Prima Facie Evidence on the Impact of Export Diversification on Relative Trade Preferential Margin

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  • Gnangnon Sena Kimm

    (World Trade Organization, Geneva, Switzerland)

Abstract

This paper assesses the impact of export diversification in developing countries and particularly Least developed countries (LDCs) on the relative preferential margin that they enjoy in accessing preference-granters’ market. The analysis is carried out in a gravity-type model comprising 19 developed countries and 54 beneficiaries of non-reciprocal trade preferences from these developed countries, over the period 2002–2007. The empirical analysis suggests a non-linear relationship between the degree of export diversification in developing countries and the relative preferential margin that they benefit from developed preference-granting countries. However, it appears that the latter encourage LDCs to diversify their export products by providing them with higher trade preference advantages compared to their competitors in their markets.

Suggested Citation

  • Gnangnon Sena Kimm, 2018. "A Prima Facie Evidence on the Impact of Export Diversification on Relative Trade Preferential Margin," Global Economy Journal, De Gruyter, vol. 18(2), pages 1-9, June.
    • Handle: RePEc:bpj:glecon:v:18:y:2018:i:2:p:9:n:1
    DOI: 10.1515/gej-2016-0015
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    More about this item

    Keywords

    relative preferential margin; export diversification; gravity-type models;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F49 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Other

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