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The tide that does not raise all boats: An assessment of EU preferential trade policies:

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  • Cipollina, Maria
  • Laborde Debucquet, David
  • Salvatici, Luca

Abstract

The aim of this paper is to assess of the impact of the European Union’s trade preferences on global trade, focusing on several methodological issues that are relevant to the trade-creating impact of these preferences. Using highly disaggregated eight-digit data in a theoretically grounded gravity model framework, we define an explicit measure of preferential tariff margins computed on alternative definitions based on a comparison between bilateral applied tariffs and two different reference levels: the most favored nation duty and a constant elasticity of substitution price aggregator. From the methodological point of view, we show that assessing the impact of these policies can be very sensitive to the definition of the preferential tariff margin.

Suggested Citation

  • Cipollina, Maria & Laborde Debucquet, David & Salvatici, Luca, 2014. "The tide that does not raise all boats: An assessment of EU preferential trade policies:," IFPRI discussion papers 1382, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:ifprid:1382
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    Cited by:

    1. Federica Demaria & Sophie Drogue & Marie-Luise Rau, 2015. "EU preferences for agri-food products from developing countries: winning and losing due to the EU GSP reform 2013," Post-Print hal-02796661, HAL.
    2. Maria Cipollina & Luca Salvatici, 2019. "The Trade Impact of EU Tariff Margins: An Empirical Assessment," Social Sciences, MDPI, Open Access Journal, vol. 8(9), pages 1-15, September.
    3. Maria Cipollina & Federica Demaria, 2020. "The Trade Effect of the EU’s Preference Margins and Non-Tariff Barriers," Journal of Risk and Financial Management, MDPI, Open Access Journal, vol. 13(9), pages 1-20, September.
    4. Luca Salvatici & Silvia Nenci, 2017. "New features, forgotten costs and counterfactual gains of the international trading system," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 44(4), pages 592-633.
    5. Maria Cipollina & Luca De Benedictis & Luca Salvatici & Claudio Vicarelli, 2016. "Policy Measurement And Multilateral Resistance In Gravity Models," Working Papers LuissLab 16130, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    6. Matthews, Alan & Salvatici, Luca & Scoppola, Margherita, 2017. "Trade Impacts of Agricultural Support in the EU," Commissioned Papers 252767, International Agricultural Trade Research Consortium.
    7. Yasin Kuso, 2018. "Impact of Currency Union on Trade: Comparative Analysis of EMU and SACU - Gravity Model Approach," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(4), pages 102-115, December.

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    More about this item

    Keywords

    Mathematical models; trade; Trade negotiations; trade policies; International trade; theoretical gravity model; preferential trade agreements; trade cost elasticity; sectoral trade flows;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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