The not-so-generalized effects of the generalized system of preferences

Emanuel Ornelas and Marcos Ritel

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: We use an empirical gravity equation approach to study how nonreciprocal trade preferences (NRTPs), enacted mainly through the Generalized System of Preferences, affect the exports of the beneficiary nations. In line with existing studies, the average trade effect stemming from nonreciprocal preferences is highly unstable across specifications. However, once we allow for heterogeneous effects, results become robust and economically important. Specifically, NRTPs have a strong effect on the exports of beneficiaries when they are members of the World Trade Organization and are very poor. Not-so-poor beneficiaries also expand foreign sales, but only if they are not WTO members. For all others, the average export effects of NRTPs are mute.

Keywords: trade preferences; gravity equation; trade policy; nonreciprocity; GSP (search for similar items in EconPapers)
JEL-codes: F13 F14 F15 F55 F63 O19 O24 (search for similar items in EconPapers)
Date: 2018-10
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Journal Article: The not‐so‐generalised effects of the Generalized System of Preferences (2020)
Working Paper: The Not-So-Generalized Effects of the Generalized System of Preferences (2018)
Working Paper: The not-so-generalized effects of the Generalized System of Preferences (2018)
Working Paper: The not-so-generalized effects of the Generalized System of Preferences (2018)
Working Paper: The not-so-generalized effects of the generalized system of preferences (2018)
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