The effect of nonreciprocal preferential trade agreements on benefactors’ exports

Salvador Gil-Pareja, Rafael Llorca-Vivero and José Antonio Martínez-Serrano
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Rafael Llorca-Vivero: University of Valencia
José Antonio Martínez-Serrano: University of Valencia

Empirical Economics, 2017, vol. 52, issue 1, No 6, 143-154

Abstract: Abstract Over the last decades, developed countries have provided developing countries with preferential market access via trade policies in the form of nonreciprocal preferential trade agreements (NRPTAs). Despite the lack of reciprocity of this kind of agreements, certain criteria for designating eligible countries refer to the commercial interests of benefactor countries. This paper examines for the first time the effect of NRPTAs on benefactors’ exports to beneficiary countries. Using recent developments in the econometric analysis of the gravity equation, we find robust evidence that nonreciprocal agreements have had an economically significant effect on exports not only for beneficiary countries but also for benefactor countries.

Keywords: Nonreciprocal preferential trade agreements; Developing countries; Exports; Gravity equation (search for similar items in EconPapers)
JEL-codes: F14 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (7)

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DOI: 10.1007/s00181-016-1071-y

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