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Assessing Market Access: Do Developing Countries Really Get a Preferential Treatment?

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  • Antimiani, Alessandro

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  • Conforti, Piero

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  • Salvatici, Luca

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Abstract

This paper provides an assessment of the existing preferences on the products currently exported in a few key developed countries’ markets: EU, Japan and US. The analysis is undertaken drawing on the trade preferences database provided by the most recent version (release 6) of the GTAP database. This includes a presentation of the structure of tariff regimes in these key developed countries and identification of countries and sectors that are most reliant on tariff preferences. The paper computes theoretically consistent protection indexes using a comparative static applied general equilibrium model (Global Trade Analysis Project – GTAP) featuring imperfect competition. We construct bilateral indicators of protection focused on the applied tariffs faced by the exports of each country, using an index of trade policy restrictiveness, the Mercantilistic Trade Restrictiveness Index (MTRI), as the tariff aggregator. Our results provide a picture which is quite different from the one yielded by traditional indexes, such as the trade-weighted tariff average, or market access measures based on bound tariffs.

Suggested Citation

  • Antimiani, Alessandro & Conforti, Piero & Salvatici, Luca, 2007. "Assessing Market Access: Do Developing Countries Really Get a Preferential Treatment?," Economics & Statistics Discussion Papers esdp07036, University of Molise, Dept. EGSeI.
  • Handle: RePEc:mol:ecsdps:esdp07036
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    References listed on IDEAS

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    1. Hiau LooiKee & Alessandro Nicita & Marcelo Olarreaga, 2009. "Estimating Trade Restrictiveness Indices," Economic Journal, Royal Economic Society, vol. 119(534), pages 172-199, January.
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    4. Antimiani, Alessandro & Salvatici, Luca, 2005. "EU Trade Policies: Benchmarking Protection in a General Equilibrium Framework," Working Papers 18856, TRADEAG - Agricultural Trade Agreements.
    5. Andrew K. Rose, 2004. "Do We Really Know That the WTO Increases Trade?," American Economic Review, American Economic Association, vol. 94(1), pages 98-114, March.
    6. Bela Balassa, 1965. "Tariff Protection in Industrial Countries: An Evaluation," Journal of Political Economy, University of Chicago Press, vol. 73, pages 573-573.
    7. James E. Anderson & J. Peter Neary, 2003. "The Mercantilist Index of Trade Policy," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(2), pages 627-649, May.
    8. Manchin, Miriam, 2005. "Preference utilization and tariff reduction in European Union imports from African, Caribbean, and Pacific countries," Policy Research Working Paper Series 3688, The World Bank.
    9. Bach, Christian F. & Martin, Will, 2001. "Would the right tariff aggregator for policy analysis please stand up?," Journal of Policy Modeling, Elsevier, vol. 23(6), pages 621-635, August.
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    12. C. F. Bach & S. E. Frandsen & H. G. Jensen, 2000. "Agricultural and Economy-Wide Effects of European Enlargement: Modelling the Common Agricultural Policy," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 162-180.
    13. Candau, Fabien & Jean, Sebastien, 2005. "What Are EU Trade Preferences Worth for Sub-Saharan Africa and Other Developing Countries?," Working Papers 18863, TRADEAG - Agricultural Trade Agreements.
    14. Antoine Bouët & Lionel Fontagné & Sébastien Jean, 2005. "Is Erosion of Tariff Preferences a Serious Concern?," Working Papers 2005-14, CEPII research center.
    15. Hans van Meijl & Frank van Tongeren, 2002. "The Agenda 2000 CAP reform, world prices and GATT--WTO export constraints," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(4), pages 445-470, December.
    16. James E. Anderson & J. Peter Neary, 2005. "Measuring the Restrictiveness of International Trade Policy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262012200, January.
    17. Francois, Joseph, 1998. "Scale Economies and Imperfect Competition in the GTAP Model," GTAP Technical Papers 317, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
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    Cited by:

    1. Alessandro Olper & Valentina Raimondi, 2009. "Patterns and Determinants of International Trade Costs in the Food Industry," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(2), pages 273-297.
    2. Anania, Giovanni, 2007. "Multilateral Negotiations, Preferential Trade Agreements and the CAP. What's Ahead?," Working Papers 7283, TRADEAG - Agricultural Trade Agreements.

    More about this item

    Keywords

    Commercial Policy; Protection; Computable General Equilibrium Models; Agriculture in International Trade.;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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