The trade impact of European Union agricultural preferences

Maria Cipollina and Luca Salvatici ()

Journal of Economic Policy Reform, 2010, vol. 13, issue 1, 87-106

Abstract: We assess the impact on agricultural trade of European Union (EU) trade policies, using a gravity model based on disaggregated trade flows from 161 developing countries (DCs) to 15 EU member countries. We use a sample selection framework to account for potential selection bias of positive trade flows and provide an explicit measure for relative preference margins. From a policy perspective, our results debunk some of the most widespread criticisms of preferential policies: EU preferences matter and have a positive impact on DCs agricultural exports at both the extensive and intensive margins, although with significant differences across sectors.

Date: 2010
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DOI: 10.1080/17487870903546259

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