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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:

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    3. Gnangnon, Sèna Kimm, 2021. "Effect of the Utilization of Non-Reciprocal Trade Preferences offered by the QUAD on Economic Growth in Beneficiary Countries," EconStor Preprints 242848, ZBW - Leibniz Information Centre for Economics.
    4. Maria Cipollina & Luca Salvatici, 2022. "The Dark Matter of Bilateral Preferential Margins: An Assessment of the Effect of US Tariffs," Sustainability, MDPI, vol. 14(8), pages 1-16, April.
    5. Gnangnon, Sèna Kimm, 2021. "Do Unilateral Trade Preferences Help Reduce Poverty in Beneficiary Countries?," EconStor Preprints 247346, ZBW - Leibniz Information Centre for Economics.
    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. 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.
    8. Gnangnon, Sèna Kimm, 2022. "Effect of the utilization of non-reciprocal trade preferences offered by the QUAD countries on beneficiary countries' economic complexity," Journal of the Japanese and International Economies, Elsevier, vol. 65(C).
    9. Maria Cipollina & Luca Salvatici, 2019. "The Trade Impact of EU Tariff Margins: An Empirical Assessment," Social Sciences, MDPI, vol. 8(9), pages 1-15, September.
    10. 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.
    11. Gnangnon, Sèna Kimm & Iyer, Harish, 2021. "Effect of Aid for Trade and Foreign Direct Investment Inflows on the Utilization of Unilateral Trade Preferences offered by the QUAD countries," EconStor Preprints 238211, ZBW - Leibniz Information Centre for Economics.
    12. 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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