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The Tide That Does Not Raise All Boats: An Assessment of EU Preferential Trade Policies

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  • Maria Cipollina
  • David Laborde
  • Luca Salvatici

Abstract

The aim of this article 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 these preferences’ trade creating impact. Using highly disaggregated 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 Favoured Nation duty and a Constant Elasticity of Substitution price aggregator. From the methodological point of view, we show that the assessment of these policies’ impacts can be very sensitive to the definition of the preferential tariff margin. From a policy perspective, such preferential schemes have an actual impact on trade volumes, although with significant differences across sectors

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  • Maria Cipollina & David Laborde & Luca Salvatici, 2014. "The Tide That Does Not Raise All Boats: An Assessment of EU Preferential Trade Policies," Departmental Working Papers of Economics - University 'Roma Tre' 0194, Department of Economics - University Roma Tre.
  • Handle: RePEc:rtr:wpaper:0194
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    Cited by:

    1. 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.
    2. Matthews, Alan & Salvatici, Luca & Scoppola, Margherita, 2017. "Trade Impacts of Agricultural Support in the EU," Commissioned Papers 252767, International Agricultural Trade Research Consortium.
    3. repec:oup:erevae:v:44:y:2017:i:4:p:592-633. is not listed on IDEAS

    More about this item

    Keywords

    Theoretical gravity model; Preferential trade agreements; T;

    JEL classification:

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

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