The direct and relative effects of preferential market access

Marco Fugazza () and Alessandro Nicita

Journal of International Economics, 2013, vol. 89, issue 2, 357-368

Abstract: The proliferation of preferential trade agreements has resulted in a complex system of preferences in which market access conditions are often discriminatory. In this paper we investigate how market access conditions have evolved between 2000 and 2009, and how this has affected international trade. Our results show that the proliferation of preferential access has increased bilateral trade not only due to lower tariffs but also because preferential access often resulted in higher preferential margins vis-à-vis foreign competitors. The results also indicate that the evolution of the system of preferences has been disadvantageous for countries that did not actively engage in forming new trade agreements.

Keywords: Gravity model; Trade policy; International Trade Flows; Tariffs (search for similar items in EconPapers)
JEL-codes: F10 F15 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (52)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:89:y:2013:i:2:p:357-368

DOI: 10.1016/j.jinteco.2012.09.001

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