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Effects of STABEX on Cotton Imports of the European Community

Macki M. Sissoko and Patricia A. Duffy

Review of Agricultural Economics, 1993, vol. 15, issue 2, 379-388

Abstract: An Armington approach was used to analyze the effects of the STABEX system on the cotton imports of the European Community. STABEX, a provision of the Lome Conventions, provides transfer payments from the European Community to certain former colonies when export earnings of protected commodities experience a shortfall. Since its inception, STABEX appears to have increased the market share of certain former European colonies at the expense of other regions, mostly composed of third world countries.

Date: 1993
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