Trade diversion under selective preferential market access

Borchert, Ingo (2009) Trade diversion under selective preferential market access. Canadian Journal of Economics, 42 (4). pp. 1390-1410. ISSN 0008-4085

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The European Community (EC) operates a multi-layered GSP scheme in which different groups of developing countries are granted varying degrees of market access. This paper analyzes the question of trade diversion among different categories of beneficiary countries ensuing from the selectivity of preferential market access. Evidence from a disaggregated panel data analysis reveals sizable intra-developing country trade diversion. The losses for relatively disadvantaged countries in terms of forgone trade volume are estimated to range between about 2% to 20% of their total trade with the EC. The distortions are driven by highly substitutable, mostly labour-intensive commodities.

Item Type: Article
Schools and Departments: University of Sussex Business School > Economics
Subjects: H Social Sciences > HF Commerce > HF1701 Tariff. Free trade. Protectionism
Depositing User: Ingo Borchert
Date Deposited: 14 Jun 2012 11:47
Last Modified: 06 Jul 2012 11:50
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