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The direct and relative effects of preferential market access

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  • Fugazza, Marco
  • Nicita, Alessandro

Abstract

The proliferation of preferential trade agreements has resulted in a complex system of preferences in which market access conditions are often discriminatory. In this paper we investigate how market access conditions have evolved between 2000 and 2009, and how this has affected international trade. Our results show that the proliferation of preferential access has increased bilateral trade not only due to lower tariffs but also because preferential access often resulted in higher preferential margins vis-à-vis foreign competitors. The results also indicate that the evolution of the system of preferences has been disadvantageous for countries that did not actively engage in forming new trade agreements.

Suggested Citation

  • Fugazza, Marco & Nicita, Alessandro, 2013. "The direct and relative effects of preferential market access," Journal of International Economics, Elsevier, vol. 89(2), pages 357-368.
  • Handle: RePEc:eee:inecon:v:89:y:2013:i:2:p:357-368
    DOI: 10.1016/j.jinteco.2012.09.001
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    Cited by:

    1. Anne-Célia Disdier & Lionel Fontagné & Mondher Mimouni, 2015. "Tariff Liberalization and Trade Integration of Emerging Countries," Review of International Economics, Wiley Blackwell, vol. 23(5), pages 946-971, November.
    2. Marco Fugazza & Alain McLaren, 2014. "Market Access, Export Performance and Survival: Evidence from Peruvian Firms," Review of International Economics, Wiley Blackwell, vol. 22(3), pages 599-624, August.
    3. Sharma, Anupa & Grant, Jason & Boys, Kathryn, 2015. "Truly Preferential Treatment? Reconsidering the Generalized System of (Trade) Preferences," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205890, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    4. Moser, Christoph & Rose, Andrew K., 2014. "Who benefits from regional trade agreements? The view from the stock market," European Economic Review, Elsevier, vol. 68(C), pages 31-47.
    5. Maria Cipollina & David Laborde Debucquet & Luca Salvatici, 2017. "The tide that does not raise all boats: an assessment of EU preferential trade policies," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 153(1), pages 199-231, February.
    6. Egger, Peter & Tarlea, Filip, 2017. "Comparing Apples to Apples: Estimating Consistent Partial Effects of Preferential Economic Integration Agreements," CEPR Discussion Papers 11894, C.E.P.R. Discussion Papers.
    7. Gil-Pareja, Salvador & Llorca-Vivero, Rafael, 2017. "El comercio exterior de España y el proceso de Integración Europea /The Foreign trade of Spain and the European Integration Process," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 35, pages 63-84, Enero.
    8. Sajal Lahiri & Peri Silva, 2016. "Potential Pareto-Improving Move Toward Most Favored Nation Tariffs," Economic Inquiry, Western Economic Association International, vol. 54(2), pages 1086-1104, April.
    9. Hiroyuki Taguchi, 2015. "Trade creation and diversion effects of ASEAN-plus-one free trade agreements," Economics Bulletin, AccessEcon, vol. 35(3), pages 1856-1866.
    10. Egger, Peter Hannes & Egger, Peter, 2016. "Heterogeneous Effects of Tariff and Nontariff Policy Barriers in General Equilibrium," Annual Conference 2016 (Augsburg): Demographic Change 145675, Verein für Socialpolitik / German Economic Association.
    11. Nicita, Alessandro & Rollo, Valentina, 2015. "Market Access Conditions and Sub-Saharan Africa’s Exports Diversification," World Development, Elsevier, vol. 68(C), pages 254-263.
    12. Marco Fugazza & Claudia Trentini, 2014. "Empirical Insights On Market Access And Foreign Direct Investment," UNCTAD Blue Series Papers 63, United Nations Conference on Trade and Development.
    13. Emiliano Magrini & Pierluigi Montalbano & Silvia Nenci, 2013. "Are the EU trade preferences really effective? A Generalized Propensity Score evaluation of the Southern Mediterranean Countries' case in agriculture and fishery," Working Papers 2/13, Sapienza University of Rome, DISS.
    14. Sébastien Jean & Jean-Christophe Bureau, 2015. "Do Regional Trade Agreements Really Boost Trade? Estimates for Agricultural Products," Working Papers 2015-09, CEPII research center.
    15. Taguchi, Hiroyuki & Lee, Hak-Loh, 2016. "ASEAN-plus-one Free Trade Agreements and their trade effects," MPRA Paper 72503, University Library of Munich, Germany.

    More about this item

    Keywords

    Gravity model; Trade policy; International Trade Flows; Tariffs;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F15 - International Economics - - Trade - - - Economic Integration

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