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The Role of the Everything But Arms Trade Preferences Regime in the EU Development Strategy

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  • Gradeva, Katerina
  • Martínez-Zarzoso, Inmaculada

Abstract

This study examines the effect of the Everything But Arms (EBA) trade preferences regime on exports from African, Caribbean and Pacific (ACP) Least Developed Countries (LDCs) to the European Union (EU). With this aim, an augmented gravity model is estimated for exports from the 79 ACP countries to the EU-15 for the time period 1995 to 2005 using panel data techniques. The model estimates are used to quantify the effect of the EBA preferences on the ACP LDCs' export performance and to compare it with the impact of official development assistance. In addition to their separate effects, the combined impact of EBA and aid flows is estimated. The main results show a negative effect of the EBA regime on exports. Otherwise, the combined effect of the EBA and aid on exports is positive, supporting an EU development strategy that includes both sorts of assistance, aid and trade preferences.

Suggested Citation

  • Gradeva, Katerina & Martínez-Zarzoso, Inmaculada, 2010. "The Role of the Everything But Arms Trade Preferences Regime in the EU Development Strategy," Proceedings of the German Development Economics Conference, Hannover 2010 42, Verein für Socialpolitik, Research Committee Development Economics.
    • Handle: RePEc:zbw:gdec10:42
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    References listed on IDEAS

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    1. Martinez-Zarzoso, Inmaculada & Nowak-Lehmann, Felicitas, 2003. "Augmented Gravity Model: An Empirical Application to Mercosur-European Union Trade Flows," Journal of Applied Economics, Universidad del CEMA, vol. 6(2), pages 1-26, November.
    2. Inmaculada Martínez-Zarzoso & Felicitas Nowak-Lehmann D., 2003. "Augmented gravity model: An empirical application to Mercosur- European trade flows," International Trade 0309019, University Library of Munich, Germany.
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    Cited by:

    1. Khorana, Sangeeta & Caram, Santiago & Biagetti, Marco, 2021. "Developmental relevance of Everything but Arms: Implications for Bangladesh after LDC graduation," MPRA Paper 116258, University Library of Munich, Germany.
    2. Ronald B. Davies & Rodolphe Desbordes, 2016. "The Impact of Everything But Arms on EU Relative Labour Demand," Working Papers 201614, School of Economics, University College Dublin.
    3. Sylviane Guillaumont Jeanneney and Ping Hua, 2020. "When and How African Real Exchange Rates Relative to China Affect its Manufacturing?," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 45(4), pages 1-34, December.

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    More about this item

    Keywords

    development aid; trade preferences; Everything But Arms; panel data;
    All these keywords.

    JEL classification:

    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F35 - International Economics - - International Finance - - - Foreign Aid

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