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EU Trade Preferences and Export Diversification

Persson, Maria LU and Wilhelmsson, Fredrik LU (2013) In Working Paper Series from Research Institute of Industrial Economics
Abstract
Since at least the 1960s, the European Union (EU) has offered various kinds of non-reciprocal trade preferences for developing countries. Originally, these trade preferences had at least two policy goals: (i) to increase export volumes for developing countries and thereby boost their export earnings, and (ii) to facilitate export diversification. While extensive research has confirmed that the first of these goals is typically met, the second goal seems to have been largely forgotten by researchers as well as in policy circles. The aim of this paper is therefore to analyse the impact of the EU’s non-reciprocal trade preferences for developing countries on export diversification. Our estimation results suggest that some trade preference... (More)
Since at least the 1960s, the European Union (EU) has offered various kinds of non-reciprocal trade preferences for developing countries. Originally, these trade preferences had at least two policy goals: (i) to increase export volumes for developing countries and thereby boost their export earnings, and (ii) to facilitate export diversification. While extensive research has confirmed that the first of these goals is typically met, the second goal seems to have been largely forgotten by researchers as well as in policy circles. The aim of this paper is therefore to analyse the impact of the EU’s non-reciprocal trade preferences for developing countries on export diversification. Our estimation results suggest that some trade preference programs, such as the Generalised Scheme of Preferences (GSP), are associated with increasing ranges of export products. By contrast, preferences offered to Mediterranean countries typically have no significant effects, and African, Caribbean and Pacific (ACP) preferences actually have negative effects toward the end of our time period, suggesting that ACP countries may respond to preferences by specializing into fewer goods. (Less)
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author
organization
publishing date
type
Working Paper
publication status
published
subject
keywords
Export diversification, non-reciprocal trade preferences, GSP, ACP, EU
in
Working Paper Series from Research Institute of Industrial Economics
issue
991
pages
31 pages
publisher
Research Institute of Industrial Economics, Stockholm
project
BECC
language
English
LU publication?
yes
id
20ae38ae-2f64-44b7-bf7e-e251ad57b064 (old id 4186993)
alternative location
http://swopec.hhs.se/lunewp/abs/lunewp2013_032.htm
date added to LUP
2013-12-04 09:06:28
date last changed
2016-08-30 13:14:05
@misc{20ae38ae-2f64-44b7-bf7e-e251ad57b064,
  abstract     = {Since at least the 1960s, the European Union (EU) has offered various kinds of non-reciprocal trade preferences for developing countries. Originally, these trade preferences had at least two policy goals: (i) to increase export volumes for developing countries and thereby boost their export earnings, and (ii) to facilitate export diversification. While extensive research has confirmed that the first of these goals is typically met, the second goal seems to have been largely forgotten by researchers as well as in policy circles. The aim of this paper is therefore to analyse the impact of the EU’s non-reciprocal trade preferences for developing countries on export diversification. Our estimation results suggest that some trade preference programs, such as the Generalised Scheme of Preferences (GSP), are associated with increasing ranges of export products. By contrast, preferences offered to Mediterranean countries typically have no significant effects, and African, Caribbean and Pacific (ACP) preferences actually have negative effects toward the end of our time period, suggesting that ACP countries may respond to preferences by specializing into fewer goods.},
  author       = {Persson, Maria and Wilhelmsson, Fredrik},
  keyword      = {Export diversification,non-reciprocal trade preferences,GSP,ACP,EU},
  language     = {eng},
  number       = {991},
  pages        = {31},
  publisher    = {ARRAY(0xb3e53b8)},
  series       = {Working Paper Series from Research Institute of Industrial Economics},
  title        = {EU Trade Preferences and Export Diversification},
  year         = {2013},
}