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Are the EU trade preferences really effective? A Generalized Propensity Score evaluation of the Southern Mediterranean Countries' case in agriculture and fishery

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  • Emiliano Magrini

    () (European Commission - JRC-IPTS - AGRILIFE Unit (Sevilla, ES))

  • Pierluigi Montalbano

    () (Sapienza, University of Rome)

  • Silvia Nenci

    () (University of ROme 3)

Abstract

The aim of this work is to assess the trade impact of preferential schemes in agriculture and fishery granted by the European Union (EU) to the Southern Mediterranean Countries (SMCs). This analysis presents several methodological improvements to previous works. First of all, we rely on a continuous treatment - i.e., preferential margins - to capture the ``average treatment effect'' of trade preferences rather than on a binary treatment based on dummy variables. Second, we apply non parametric matching techniques for continuous treatment, namely a generalized propensity score matching (GPS) technique, to assess the average causal effects of preferences on trade flows. Third, we use highly disaggregated data at sectoral level in order to evaluate properly the preferential treatment which is conceived to be applied at the product level. Our results show how the impact of EU preferences in agriculture and fishery granted to SMCs is positive and significant and better evaluated using impact evaluation techniques. We also assess the functional form of the relationship between EU-SMCs preferences and bilateral trade flows as well as the optimal level of preferential margin above which the marginal impact decreases.

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  • Emiliano Magrini & Pierluigi Montalbano & Silvia Nenci, 2013. "Are the EU trade preferences really effective? A Generalized Propensity Score evaluation of the Southern Mediterranean Countries' case in agriculture and fishery," Working Papers 2/13, Sapienza University of Rome, DISS.
  • Handle: RePEc:saq:wpaper:2/13
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    Cited by:

    1. Emiliano Magrini & Pierluigi Montalbano & Silvia Nenci & Luca Salvatici, 2014. "Agricultural Trade Policies and Food Security: Is there a Causal Relationship?," Working Papers 9/14, Sapienza University of Rome, DISS.
    2. repec:oup:ajagec:v:99:y:2017:i:4:p:847-871. is not listed on IDEAS
    3. repec:eee:jpolmo:v:39:y:2017:i:6:p:1007-1018 is not listed on IDEAS
    4. Marcella Corsi & Marina De Angelis & Pierluigi Montalbano, 2013. "The Gender Impact of Microfinance: The Case of Wekembe in Uganda," Working Papers CEB 13-045, ULB -- Universite Libre de Bruxelles.
    5. Emiliano Magrini & Pierluigi Montalbano & Silvia Nenci & Luca Salvatici, 2017. "Agricultural (Dis)Incentives and Food Security: Is There a Link?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(4), pages 847-871.
    6. Emiliano Magrini & Pierluigi Montalbano & Silvia Nenci & Luca Salvatici, 2014. "Agricultural Trade Policies and Food Security: Is there a Causal Relationship?," Working Papers 9/14, Sapienza University of Rome, DISS.

    More about this item

    Keywords

    International trade; EU-MED integration; Preferential trade agreement; Impact evaluation; Matching econometrics.;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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