The Effects of Tariff Preferences on Export Expansion, Export Diversification and Investment Diversion: A Comparative Analysis of the Iberian and Other Mediterranean Economies

George N. Yannopoulos

Chapter 4 in European Integration and the Iberian Economies, 1989, pp 66-86 from Palgrave Macmillan

Abstract: Abstract This chapter provides the background for the subsequent examination (chapters 5–8) of the effects of EEC and EFTA preferences on the two Iberian economies. Section two presents the main hypotheses often advanced in the literature regarding the impact of tariff preferences on export expansion, export diversification and foreign direct investment diversion in favour of the recipient countries. The chapter then proceeds (sections 3,4 and 5) to examine the validity of these hypotheses by testing them against the experiences of the two Iberian economies and selected countries from the Mediterranean region recipients of EEC tariff preferences. We decided to broaden the coverage of our sample in the empirical analysis by including a number of other Mediterranean countries which throughout the 1970s enjoyed tariff preferences approximately similar to those offered to the Iberian countries. In this way the analysis reported in the rest of this book can be generalised more easily.

Keywords: Foreign Direct Investment; Export Performance; Beneficiary Country; Southern European Country; Trade Preference (search for similar items in EconPapers)
Date: 1989
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-09712-8_4

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DOI: 10.1007/978-1-349-09712-8_4

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