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EU Trade Preferences and Export Diversification

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Abstract

Since at least the 1960s, the European Union (EU) has offered various kinds of non-reciprocal trade preferences for developing countries. Originally, these trade preferences had at least two policy goals: (i) to increase export volumes for developing countries and thereby boost their export earnings, and (ii) to facilitate export diversification. While extensive research has confirmed that the first of these goals is typically met, the second goal seems to have been largely forgotten by researchers as well as in policy circles. The aim of this paper is therefore to analyse the impact of the EU’s non-reciprocal trade preferences for developing countries on export diversification. Our estimation results suggest that some trade preference programs, such as the Generalised Scheme of Preferences (GSP), are associated with increasing ranges of export products. By contrast, preferences offered to Mediterranean countries typically have no significant effects, and African, Caribbean and Pacific (ACP) preferences actually have negative effects toward the end of our time period, suggesting that ACP countries may respond to preferences by specializing into fewer goods.

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  • Persson, Maria & Wilhelmsson, Fredrik, 2013. "EU Trade Preferences and Export Diversification," Working Papers 2013:32, Lund University, Department of Economics.
  • Handle: RePEc:hhs:lunewp:2013_032
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    Cited by:

    1. Sylvanus Kwaku Afesorgbor & Kaleb Girma Abreha, 2015. "Preferential Market Access, Foreign Aid and Economic Development," Economics Working Papers 2015-04, Department of Economics and Business Economics, Aarhus University.
    2. Persson, Maria, 2012. "From trade preferences to trade facilitation: Taking stock of the issues," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 6, pages 1-33.
    3. Clement Anne, 2016. "Are Commodity Price Booms an Opportunity to Diversify? Evidence from Resource-dependent Countries," Working Papers halshs-01381143, HAL.
    4. Demaria, Federica & Drogue, Sophie & Rau, Marie Luise, 2015. "EU preferences for agri-food products from developing countries- winning and losing due to the EU GSP reform 2013," 2015 Conference, August 9-14, 2015, Milan, Italy 211568, International Association of Agricultural Economists.
    5. Margherita Scoppola & Valentina Raimondi & Alessandro Olper, 2014. "The impact of EU trade preferences on the extensive and intensive margins of agricultural and food products," FOODSECURE Working papers 22, LEI Wageningen UR.
    6. Clement ANNE, 2016. "Are Commodity Price Booms an Opportunity to Diversify? Evidence from Resource-dependent Countries," Working Papers 201615, CERDI.
    7. repec:gei:journl:v:4:y:2017:i:1:p:27-53 is not listed on IDEAS
    8. Javed, Zanib & Munir, Kashif, 2016. "Impact of Export Composition on Economic Growth in South Asia," MPRA Paper 71519, University Library of Munich, Germany.
    9. Scoppola, M. & Raimondi, V. & Olper, A., 2013. "The Impact of EU Trade Preferences on the Extensive and Intensive Agricultural and Food Product Margins," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151145, Agricultural and Applied Economics Association.
    10. Persson, Maria, 2013. "Trade Preferences from a Policy Perspective," Working Papers 2013:3, Lund University, Department of Economics.
    11. repec:eee:wdevel:v:102:y:2018:i:c:p:243-261 is not listed on IDEAS
    12. repec:eee:appene:v:203:y:2017:i:c:p:154-163 is not listed on IDEAS

    More about this item

    Keywords

    Export diversification; non-reciprocal trade preferences; GSP; ACP; EU;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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