IDEAS home Printed from
   My bibliography  Save this paper

Export Competitiveness of Developing Countries and U.S. Trade Policy


  • Hakobyan, Shushanik


We examine the impact of revocation of tariff exemptions on exports of developing countries, using data from the cases of Competitive Needs Limits (CNL) built into the Generalized System of Preferences (GSP). CNLs are arguably imposed on super competitive GSP beneficiaries and aim to limit their exporting capacity. We exploit the variation in the timing of the implementation of the CNLs across countries to identify the impact. We find that being excluded from the GSP due to a CNL induces a large and significant drop in imports from excluded countries, both in value and in their share in imports from all sources. Contrary to the policy objectives of CNLs, the excluded countries do not appear to be super competitive. In addition, we find some evidence of exporters increasing their exports of related products to the US after the CNL exclusion applies. Finally, our findings suggest that much of the benefits of CNLs accrue to non-GSP countries, rather than other GSP beneficiaries.

Suggested Citation

  • Hakobyan, Shushanik, 2011. "Export Competitiveness of Developing Countries and U.S. Trade Policy," Proceedings of the German Development Economics Conference, Berlin 2011 37, Verein für Socialpolitik, Research Committee Development Economics.
  • Handle: RePEc:zbw:gdec11:37

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Jean-Christophe Bureau & Raja Chakir & Jacques Gallezot, 2007. "The Utilisation of Trade Preferences for Developing Countries in the Agri-food Sector," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(2), pages 175-198, June.
    2. Craig R. Macphee & Victor Iwuagwu Oguledo, 1994. "Losses of tariff preferences and the export performance of less‐developed countries," Journal of International Development, John Wiley & Sons, Ltd., vol. 6(4), pages 361-371, July.
    3. James E. Anderson, 2011. "The Gravity Model," Annual Review of Economics, Annual Reviews, vol. 3(1), pages 133-160, September.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Generalized System of Preferences (GSP); Competitive Needs Limits; export competitiveness; trade policy; developing countries;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:gdec11:37. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.