IDEAS home Printed from https://ideas.repec.org/a/eee/iburev/v15y2006i1p68-83.html
   My bibliography  Save this article

US trade preferences and export performance of developing countries: Evidence from the generalized system of preferences

Author

Listed:
  • Seyoum, Belay

Abstract

Preferential market access such as the generalized system of preferences (GSP) is clearly recognized as a way of enabling developing countries export their way out of poverty. It has been a vital feature of industrialized countries' commercial policy for nearly 30 years. This study empirically explores the linkages between US trade preferences under the GSP and beneficiary country exports. Using a large US import database covering over 120 developing countries, the study examines the extent to which GSP influences export performance. The results largely indicate that the GSP has a significant and positive effect on beneficiary exports to US for all country and product groups. A proper understanding of this relationship will help donors and recipients devise appropriate policies to help encourage the growth and diversification of exports that is so vital for developing countries.

Suggested Citation

  • Seyoum, Belay, 2006. "US trade preferences and export performance of developing countries: Evidence from the generalized system of preferences," International Business Review, Elsevier, vol. 15(1), pages 68-83, February.
    • Handle: RePEc:eee:iburev:v:15:y:2006:i:1:p:68-83
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969593105001290
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zubair Iqbal, 1976. "Trade Effects of the Generalized System of Preferences," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 15(1), pages 64-89.
    2. Baldwin, R E & Murray, Tracy, 1977. "MFN Tariff Reductions and Developing Country Trade Benefits under the GSP," Economic Journal, Royal Economic Society, vol. 87(345), pages 30-46, March.
    3. Brenton, Paul, 2003. "Integrating the least developed countries into the world trading system : the current impact of EU preferences under everything but arms," Policy Research Working Paper Series 3018, The World Bank.
    4. Carl H Christensen & Angela da Rocha & Rosane Kerbel Gertner, 1987. "An Empirical Investigation of Factors Influencing Exporting Success of Brazilian Firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 18(3), pages 61-77, September.
    5. Baldauf, Artur & Cravens, David W. & Wagner, Udo, 2000. "Examining determinants of export performance in small open economies," Journal of World Business, Elsevier, vol. 35(1), pages 61-79, April.
    6. André Sapir & Lars Lundberg, 1984. "The U.S. Generalized System of Preferences and Its Impacts," NBER Chapters, in: The Structure and Evolution of Recent US Trade Policy, pages 195-236, National Bureau of Economic Research, Inc.
    7. James E. Anderson & Douglas Marcouiller, 2002. "Insecurity And The Pattern Of Trade: An Empirical Investigation," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 342-352, May.
    8. Sekkat, Khalid & Varoudakis, Aristomene, 2000. "Exchange rate management and manufactured exports in Sub-Saharan Africa," Journal of Development Economics, Elsevier, vol. 61(1), pages 237-253, February.
    9. Elena Ianchovichina & Aaditya Mattoo & Marcelo Olarreaga, 2001. "Unrestricted Market Access for Sub‐Saharan Africa: How Much Is It Worth and Who Pays?," Journal of African Economies, Centre for the Study of African Economies, vol. 10(4), pages 410-432.
    10. Luis V Dominguez & Carlos G Sequeira, 1993. "Determinants of LDC Exporters′ Performance: A Cross-National Study*," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 24(1), pages 19-40, March.
    11. Timothy J Wilkinson & Lance Eliot Brouthers, 2000. "Trade Shows, Trade Missions and State Governments: Increasing FDI and High-Tech Exports," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 31(4), pages 725-734, December.
    12. Samiee, Saeed & Walters, Peter G. P., 1990. "Influence of firm size on export planning and performance," Journal of Business Research, Elsevier, vol. 20(3), pages 235-248, May.
    13. Bela Balassa, 1985. "Change and Challenge in the World Economy," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-17991-6, December.
    14. Sushanta Mallick, 2001. "Dynamics of Macroeconomic Adjustment with Growth: Some Simulation Results," International Economic Journal, Taylor & Francis Journals, vol. 15(1), pages 115-139.
    15. Ling-yee, Li & Ogunmokun, Gabriel O., 2001. "Effect of export financing resources and supply-chain skills on export competitive advantages: implications for superior export performance," Journal of World Business, Elsevier, vol. 36(3), pages 260-279, October.
    16. David Besanko & David Dranove & Mark Shanley, 2001. "Exploiting a Cost Advantage and Coping with a Cost Disadvantage," Management Science, INFORMS, vol. 47(2), pages 221-235, February.
    17. Rose, Gregory M. & Shoham, Aviv, 2002. "Export performance and market orientation: establishing an empirical link," Journal of Business Research, Elsevier, vol. 55(3), pages 217-225, March.
    18. World Bank, 2003. "World Development Indicators 2003," World Bank Publications - Books, The World Bank Group, number 13920.
    19. Ricardo, David, 1821. "On the Principles of Political Economy and Taxation," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, edition 3, number ricardo1821.
    20. Wontack Hong, 2000. "Engine of Export-Oriented Catching-Up: Small Firms," International Economic Journal, Taylor & Francis Journals, vol. 14(2), pages 161-179.
    21. N Capar & M Kotabe, 2003. "The relationship between international diversification and performance in service firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(4), pages 345-355, July.
    22. Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-475, June.
    23. James Devault, 1996. "Competitive Need Limits And The U.S. Generalized System Of Preference," Contemporary Economic Policy, Western Economic Association International, vol. 14(4), pages 58-66, October.
    24. Clague, Christopher, 1971. "Tariff Preferences and Separable Utility," American Economic Review, American Economic Association, vol. 61(2), pages 188-194, May.
    25. Iain M. Cockburn & Rebecca M. Henderson & Scott Stern, 2000. "Untangling the origins of competitive advantage," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1123-1145, October.
    26. Lim, Yang Taek, 1996. "Korea's liberalization policy directives and Korea's weakening competitiveness," Journal of Asian Economics, Elsevier, vol. 7(4), pages 603-634.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nikolic, Aleksandra & Bajramović, Sabahudin & Ognjenovic, Dragana & Uzunovic, Mirza & Lalic, Davor, 2010. "Implications of Current Business Environment for Farm Development and Management in Bosnia and Herzegovina," 2010 Conference: Modern management challenges in the agro-food sector, March 18-19, Pivola, Slovenia 183878, Slovenian Association of Agricultural Economists (DAES).
    2. Gnangnon, Sèna Kimm, 2023. "Effects of the Utilization of Non-Reciprocal Trade Preferences Offered by QUAD Countries on Economic Growth in Beneficiary Countries," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 45(1), pages 33-68.
    3. Gnangnon, Sèna Kimm, 2022. "Effect of the utilization of non-reciprocal trade preferences offered by the QUAD countries on beneficiary countries' economic complexity," Journal of the Japanese and International Economies, Elsevier, vol. 65(C).
    4. Singh, Deeksha A., 2009. "Export performance of emerging market firms," International Business Review, Elsevier, vol. 18(4), pages 321-330, August.
    5. Gnangnon, Sèna Kimm, 2021. "Do Unilateral Trade Preferences Help Reduce Poverty in Beneficiary Countries?," EconStor Preprints 247346, ZBW - Leibniz Information Centre for Economics.
    6. Gnangnon, Sèna Kimm & Iyer, Harish, 2021. "Effect of Aid for Trade and Foreign Direct Investment Inflows on the Utilization of Unilateral Trade Preferences offered by the QUAD countries," EconStor Preprints 238211, ZBW - Leibniz Information Centre for Economics.
    7. Sèna Kimm Gnangnon, 2023. "Do unilateral trade preferences help reduce poverty in beneficiary countries?," International Journal of Economic Policy Studies, Springer, vol. 17(1), pages 249-288, February.
    8. Ozturk, Ayse, 2016. "Examining the economic growth and the middle-income trap from the perspective of the middle class," International Business Review, Elsevier, vol. 25(3), pages 726-738.
    9. Zhan, Ge, 2013. "Statistical power in international business research: Study levels and data types," International Business Review, Elsevier, vol. 22(4), pages 678-686.
    10. Gnangnon, Sèna Kimm, 2021. "Effect of the Utilization of Non-Reciprocal Trade Preferences offered by the QUAD on Economic Growth in Beneficiary Countries," EconStor Preprints 242848, ZBW - Leibniz Information Centre for Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dirk Boehe & Luciano Barin Cruz, 2010. "Corporate Social Responsibility, Product Differentiation Strategy and Export Performance," Journal of Business Ethics, Springer, vol. 91(2), pages 325-346, February.
    2. Theingi, & Purchase, Sharon, 2011. "How exporters’ and intermediaries’ resources influence export performance," Australasian marketing journal, Elsevier, vol. 19(2), pages 100-107.
    3. Javalgi, Rajshekhar G. & White, D. Steven & Lee, Oscar, 2000. "Firm Characteristics Influencing Export Propensity: An Empirical Investigation by Industry Type," Journal of Business Research, Elsevier, vol. 47(3), pages 217-228, March.
    4. Parhizkar, Omid & Miller, Chad R. & Smith, Robert L., 2010. "Private sector development implications of the export performance determinants of U.S. small-medium forest enterprises to Mexico, Europe, and Asia," Forest Policy and Economics, Elsevier, vol. 12(5), pages 387-396, June.
    5. Seyoum, Belay, 2007. "Trade liberalization and patterns of strategic adjustment in the US textiles and clothing industry," International Business Review, Elsevier, vol. 16(1), pages 109-135, February.
    6. BOEHE, Dirk Michael, 2009. "Corporate Social Responsibility, Product Differentiation Strategy and Export Performance," Insper Working Papers wpe_186, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
    7. Persson, Maria & Wilhelmsson, Fredrik, 2006. "Assessing the Effects of EU Trade Preferences for Developing Countries," Working Papers 2006:4, Lund University, Department of Economics, revised 26 Jun 2006.
    8. Doukoure Charle Fe, 2021. "Trade flows between the West African Economic and Monetary Union's members so little: does exports structure matter ?," Economics Bulletin, AccessEcon, vol. 41(2), pages 816-833.
    9. Sousa, Carlos M.P. & Bradley, Frank, 2008. "Antecedents of international pricing adaptation and export performance," Journal of World Business, Elsevier, vol. 43(3), pages 307-320, July.
    10. repec:dgr:rugsom:98b27 is not listed on IDEAS
    11. Pierre‐Guillaume Méon & Khalid Sekkat, 2004. "Does the Quality of Institutions Limit the MENA's Integration in the World Economy?," The World Economy, Wiley Blackwell, vol. 27(9), pages 1475-1498, September.
    12. Shadrack Muthami Mwatu, 2022. "Institutions and export performance: firm level evidence from Kenya," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 69(4), pages 487-506, December.
    13. Busse, Matthias & Shams, Rasul, 2003. "Trade Effects of the East African Community: Do We Need a Transitional Fund?," HWWA Discussion Papers 240, Hamburg Institute of International Economics (HWWA).
    14. Cuervo-Cazurra, Alvaro, 2016. "Multilatinas as sources of new research insights: The learning and escape drivers of international expansion," Journal of Business Research, Elsevier, vol. 69(6), pages 1963-1972.
    15. Hanh Vu Thi, 2015. "Essays on the Export Performance of Vietnam/Essais sur la Performance à l'Exportation du Vietnam," ULB Institutional Repository 2013/216765, ULB -- Universite Libre de Bruxelles.
    16. Christos Karelakis & Konstadinos Mattas & George Chryssochoidis, 2008. "Greek wine firms: determinants of export performance," Agribusiness, John Wiley & Sons, Ltd., vol. 24(2), pages 275-297.
    17. Leonidou, Leonidas C. & Theodosiou, Marios, 2004. "The export marketing information system: an integration of the extant knowledge," Journal of World Business, Elsevier, vol. 39(1), pages 12-36, February.
    18. Joseph Francois & Bernard Hoekman & Miriam Manchin, 2006. "Preference Erosion and Multilateral Trade Liberalization," The World Bank Economic Review, World Bank, vol. 20(2), pages 197-216.
    19. Javalgi, Rajshekhar G. & Lawson, Diana & Gross, Andrew C. & White, D. Steven, 1998. "Firm characteristics and export propensity: a comparison of manufacturers and manufacturing-based service providers," International Business Review, Elsevier, vol. 7(5), pages 521-534, October.
    20. Bouët Antoine & Laborde-Debucquet David & Dienesch Elisa & Elliott Kimberly, 2012. "The Costs and Benefits of Duty-Free, Quota-Free Market Access for Poor Countries: Who and What Matters," Journal of Globalization and Development, De Gruyter, vol. 3(1), pages 1-27, June.
    21. Mary Amiti & John Romalis, 2007. "Will the Doha Round Lead to Preference Erosion?," IMF Staff Papers, Palgrave Macmillan, vol. 54(2), pages 338-384, June.

    More about this item

    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:eee:iburev:v:15:y:2006:i:1:p:68-83. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description .

    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.