IDEAS home Printed from
   My bibliography  Save this paper

Free Market Access For Ldcs Under The Eba Initiative. An Empirical Analysis Using The Gravity Approach


  • Francesco Aiello


  • Paola Cardamone

    () (Dipartimento di Economia e Statistica, Università della Calabria)


This paper assesses the effectiveness of the Everything But Arms (EBA) initiative launched by the EU in 2001. It evaluates whether EBA was effective in increasing the exports from LDCs to the EU over the period 1995-2006. After arguing that the impact of trade preferences should be estimated by using disaggregated trade flows rather than aggregated trade, the analysis is carried out by considering five products (cloves, coffee, crustaceans, molluscs and vanilla beans) which meet three selecting criteria related to the export intensity of EBA countries, to the real/actual preferences of EBA and to the intra-year distribution of EU tariffs. Furthermore, the exports share of the 5-selected goods with respect to national exports is never marginal and, in many cases, is higher than 60%. From an econometric perspective, we improve the reliability of results by giving more attention to the econometric setting and to measurement of the preferential treatment. The evidence is mixed and while this limits the possibility to draw a general conclusion about the role of EBA, it supports the decision to work using disaggregated data because the evidence provided allows us to gauge the sector specificities which would be hidden when analysing total trade. Results show a positive impact on the exports of crustaceans and vanilla of the preferential treatment granted by the EU under EBA, whereas the evidence is un-conclusive when considering the other three products.

Suggested Citation

  • Francesco Aiello & Paola Cardamone, 2010. "Free Market Access For Ldcs Under The Eba Initiative. An Empirical Analysis Using The Gravity Approach," Working Papers 201008, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
  • Handle: RePEc:clb:wpaper:201008

    Download full text from publisher

    File URL:
    File Function: First version, 2010-04
    Download Restriction: no

    More about this item


    Trade preferences; EBA initiative; gravity model; Panel data;

    JEL classification:

    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    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:clb:wpaper:201008. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Giovanni Dodero). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.