Do trade preferential agreements enhance the exports of developing countries? Evidence from the EU GSP

Francesco Aiello () and Federica Demaria

MPRA Paper from University Library of Munich, Germany

Abstract: The EU grants preferential access to its imports from developing countries under several trade agreements. The widest arrangement, in terms of country and product coverage, is the Generalised System of Preferences (GSP) through which, since 1971, virtually all developing countries have received preferential treatment when exporting to world markets. This paper evaluates the impact of GSP in enhancing developing countries’ exports to EU markets. It is based on the estimation of a gravity model for a sample of 769 products exported from 169 countries to EU over the period 2001-2004. While, from an econometric point of view, the estimation methods take into account unobservable country heterogeneity as well as the potential selection bias which zero-trade values pose, the empirical setting considers an explicit measure of trade preferences, the margin of preferences. The analysis offers new empirical evidence that the impact of GSP on developing countries’ agricultural exports to the EU is positive.

Keywords: Trade Preferences; Developing Countries; Agricultural Trade (search for similar items in EconPapers)
JEL-codes: C33 F13 (search for similar items in EconPapers)
Date: 2009-12-15
New Economics Papers: this item is included in nep-agr and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/20093/1/MPRA_paper_20093.pdf original version (application/pdf)

Related works:
Working Paper: DO TRADE PREFERENTIAL AGREEMENTS ENHANCE THE EXPORTS OF DEVELOPING COUNTRIES? EVIDENCE FROM THE EU GSP (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:20093

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().