The effect of the GSP scheme on European Union's horticultural imports from SADC member countries: A Triple-Difference Approach

Moses H. Lubinga, Yolanda Potelwa, Thandeka Ntshangase, Bonani Nyhodo and Simphiwe Ngqangweni

No 253092, NAMC Publications from National Agricultural Marketing Council

Abstract: This work evaluates the effect of the Generalised System of Preferences (GSP1) on EU’s fruit imports from Southern African Development Community (SADC) member countries during 2005-2014, using a new and advanced micro-econometric tool known as the Triple- Difference estimator. The estimator is advantageous given that it is robust to policy endogeneity and it uses a very flexible benchmark to which the intensive margin and extensive margin of trade performance are compared. Two preference margin measures are used as proxies for the preferential treatment granted to SADC member countries by the EU. Furthermore, highly disaggregated data at HS 6-Digit level, for 12 SADC member countries and 27 EU member states are used for the analysis. The analysis employed takes into consideration of zero-trade flows. Empirical results suggest that the EU-GSP scheme generally has a significant positive impact on EU’s fruit imports from SADC member countries. Notably, the Least Developed Countries (LDCs) benefited more from the scheme as compared to the non-LDCs.

Keywords: Agribusiness; Agricultural and Food Policy; Crop Production/Industries; International Development; International Relations/Trade; Marketing (search for similar items in EconPapers)
Pages: 23
Date: 2016
New Economics Papers: this item is included in nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:ags:zanamc:253092

DOI: 10.22004/ag.econ.253092

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