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

  • Seyoum, Belay
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    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.

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    Article provided by Elsevier in its journal International Business Review.

    Volume (Year): 15 (2006)
    Issue (Month): 1 (February)
    Pages: 68-83

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