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The Doha Development Round and Africa: Partial and General Equilibrium Analyses of Tariff Preference Erosion

  • Bchir, Mohamed Hedi
  • Karingi, Stephen N.
  • Mold, Andrew
  • Osakwe, Patrick N.
  • Jallab, Mustapha Sadni

Erosion of trade preferences currently being enjoyed by LDCs and some developing countries remain an important area in the on-going trade negotiations. The different positions regarding the preference erosion question besides being informed by political economy considerations are also founded on empirical results of this particular question. But does the methodology used for the empirical analysis matter? In this paper, the importance of preference erosion question due to MFN liberalisation on agriculture is analyzed. Drawing from the potential complementary strengths in triangulation, the paper uses both partial and general equilibrium analyses. The paper shows that the ranking of preference erosion as an issue of policy concern is influenced by the empirical methodology adopted. However, irrespective of the rank, the paper concludes that preference erosion is an important issue not only in terms of welfare, but also as it has impacts on incomes for preference receiving countries.

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Paper provided by International Association of Agricultural Economists in its series 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia with number 25240.

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Date of creation: 2006
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Handle: RePEc:ags:iaae06:25240
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  1. Limão, Nuno & Olarreaga, Marcelo, 2005. "Trade Preferences to Small Developing Countries and the Welfare Costs of Lost Multilateral Liberalization," CEPR Discussion Papers 5045, C.E.P.R. Discussion Papers.
  2. Joseph Francois & Bernard Hoekman & Miriam Manchin, 2006. "Preference Erosion and Multilateral Trade Liberalization," World Bank Economic Review, World Bank Group, vol. 20(2), pages 197-216.
  3. William R. Cline, 2004. "Trade Policy and Global Poverty," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 379.
  4. Mohamed Hedi Bchir & Yvan Decreux & Jean-Louis Guerin & Sebastien Jean, 2002. "MIRAGE, un modele d'equilibre general calculable pour l'evaluation des politiques commerciales," Economie Internationale, CEPII research center, issue 89-90, pages 109-153.
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