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Impact of PTA on Trade Margins of LDCs in Sub- Saharan Africa: Evidence from the EBA

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  • Ofei, Edmund Okraku

Abstract

This study investigates the impact of the EU preferential trade agreement of Everything but Arms on the extensive and intensive margins of exports of least developed countries in Sub-Saharan Africa. The extensive margin is defined as the quantity of exported products while the intensive margin is defined as the value of exported products. The study employs the difference-indifference estimator together with fixed effects for a country bilateral product data defined at the HS 6-digit level to investigate the impact for the period 1995-2015. The findings are that the EBA has not had any impact on both trade margins of LDCs in SSA although it has impacted positively on some specific industries. The study goes further to explain how the LDCs in SSA could benefit from the EBA through complementary policies.

Suggested Citation

  • Ofei, Edmund Okraku, 2017. "Impact of PTA on Trade Margins of LDCs in Sub- Saharan Africa: Evidence from the EBA," MPRA Paper 86976, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:86976
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    File URL: https://mpra.ub.uni-muenchen.de/86976/1/MPRA_paper_86976.pdf
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    References listed on IDEAS

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    1. James R. Tybout, 2000. "Manufacturing Firms in Developing Countries: How Well Do They Do, and Why?," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 11-44, March.
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    4. Buono, Ines & Lalanne, Guy, 2012. "The effect of the Uruguay round on the intensive and extensive margins of trade," Journal of International Economics, Elsevier, vol. 86(2), pages 269-283.
    5. Baier, Scott L. & Bergstrand, Jeffrey H. & Feng, Michael, 2014. "Economic integration agreements and the margins of international trade," Journal of International Economics, Elsevier, vol. 93(2), pages 339-350.
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    8. 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.
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    More about this item

    Keywords

    trade margins; PTA; EBA; difference-in-difference; least developed countries;

    JEL classification:

    • F1 - International Economics - - Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • F6 - International Economics - - Economic Impacts of Globalization
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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