Complements or Substitutes? Preferential and Multilateral Trade Liberalization at the Sectoral Level

Mitsuyo Ando (), Antoni Estevadeordal and Christian Volpe Martincus
Additional contact information
Mitsuyo Ando: Keio University, Postal: 2-15-45 Mita, Minato-ku, , Tokyo 108-8345, Japan
Antoni Estevadeordal: Inter-American Development Bank, Postal: 1300 New York Avenue, NW, Washington, DC 20577, United States of America

No 39, Working Papers on Regional Economic Integration from Asian Development Bank

Abstract: This paper explores the relationship between preferential and multilateral trade liberalization at the sectoral level using a unique dataset that includes data on most favored nation (MFN) and bilateral preferential tariffs at the 4-digit ISIC level for 11 Latin American countries over the period 1985–2005. We find evidence of heterogeneity across sectors. While in some industries, complementary effects between both kinds of trade liberalization are observed, in others no significant links are detected and—in a few cases—even substitutability seems to prevail. Variation across sectors appears to be systematically related to both import demand elasticities and countries’ sectoral comparative advantages.

Keywords: Trade liberalization; regionalism; Latin America (search for similar items in EconPapers)
JEL-codes: C20 F13 F14 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2009-11-01
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (3)

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Working Paper: Complements or Substitutes?: Preferential and Multilateral Trade Liberalization at the Sectoral Level (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:ris:adbrei:0039

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