Trade Diversion under Selective Preferential Market Access

Through its diverse trade preference schemes, the European Union provides different groups of developing countries with different degrees of market access. This paper is the first to demonstrate empirically that such staggered market access induces sizable trade diversion to the detriment of relatively less preferred beneficiary countries. In particular, preferences granted to African, Caribbean and Pacific economies are shown to impair the export performance of seven developing countries whose products only qualify for basic preferences under the Generalized System of Preferences. Exports to the European Union decline by about 30 percent if the African, Caribbean and Pacific tariff falls by 10 percentage points. In terms of forgone trade volume, losses for these relatively disadvantaged countries amount on average to 9 percent of their total trade with the European Union, depending on the country and its main exports. These intra-developing country distortions are driven by highly substitutable, often labor-intensive commodities.

Detalles Bibliográficos

Autor principal:	Borchert, Ingo
Formato:	Policy Research Working Paper biblioteca
Idioma:	English
Publicado:	World Bank, Washington, DC 2008-09
Materias:	ACCORDS, ACCOUNTING, AD VALOREM, AGRICULTURAL PRODUCTS, APPAREL, BALANCE OF PAYMENTS, BANK POLICY, BENEFICIARIES, BENEFICIARY, BILATERAL IMPORTS, BUDGET CONSTRAINT, CHECKS, COMPARATIVE ADVANTAGE, COMPARATIVE DISADVANTAGE, COUNTRY × TARIFF, CUSTOMS, CUSTOMS UNION, DERIVATIVE, DEVELOPED COUNTRIES, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DIFFERENTIAL TREATMENT, DISCRIMINATORY MANNER, DISPUTE SETTLEMENT, DISPUTE SETTLEMENT SYSTEM, DUMMY VARIABLES, ELASTICITY OF SUBSTITUTION, EQUIPMENT, EUROPEAN UNION, EXPENDITURE, EXPORT OPPORTUNITIES, EXPORT PERFORMANCE, EXPORT VOLUME, EXPORT VOLUMES, EXPORTERS, EXPORTING COUNTRY, EXPORTS, FINAL GOODS, FREE MARKET ACCESS, FREE TRADE, FREE TRADE AGREEMENT, GENERAL EQUILIBRIUM, GENERALIZED SYSTEM OF PREFERENCES, GLOBALIZATION, IMPACT OF TRADE, IMPACT OF TRADE DIVERSION, IMPORT STATISTICS, IMPORTING COUNTRIES, IMPORTING COUNTRY, INDUSTRIAL PRODUCTS, INTERNATIONAL BANK, INTERNATIONAL ECONOMIC LAW, INTERNATIONAL ECONOMICS, INTERNATIONAL TRADE, INTERNATIONAL TRADE COMMISSION, MEMBER COUNTRIES, MULTILATERAL TRADE LIBERALIZATION, NATIONAL INCOME, NON-TARIFF BARRIERS, OPTIMAL TARIFFS, PACIFIC REGION, PATTERN OF TRADE, POLICY RESEARCH, POSITIVE COEFFICIENT, PREFERENTIAL MARGINS, PREFERENTIAL MARKET ACCESS, PREFERENTIAL RATE, PREFERENTIAL REGIME, PREFERENTIAL TARIFF, PREFERENTIAL TARIFF RATE, PREFERENTIAL TARIFFS, PREFERENTIAL TRADE, PREFERENTIAL TRADE ARRANGEMENTS, PREFERENTIAL TREATMENT, PRICE CHANGES, PRICE INDEX, PRICE SENSITIVITY, PRODUCT DIFFERENTIATION, PROTECTIONISM, QUANTITATIVE RESTRICTIONS, RECIPROCITY, REGIONALISM, RETURNS, RULES OF ORIGIN, SOURCING, SPECIALIZATION, SUSTAINABLE DEVELOPMENT, TARIFF BARRIERS, TARIFF CHANGES, TARIFF DATA, TARIFF EQUIVALENTS, TARIFF LINE, TARIFF LINES, TARIFF PREFERENCES, TARIFF RATE, TARIFF RATES, TARIFF REDUCTIONS, TARIFF SCHEDULE, TARIFF SCHEDULES, TARIFF TREATMENT, TERMS OF TRADE, TERMS OF TRADE EFFECT, TERMS OF TRADE EFFECTS, TRADE AGREEMENT, TRADE AGREEMENTS, TRADE BARRIERS, TRADE CONCESSIONS, TRADE COSTS, TRADE CREATING, TRADE CREATION, TRADE DATA, TRADE DISTORTIONS, TRADE DIVERSION, TRADE EFFECT, TRADE FLOWS, TRADE LIBERALISATION, TRADE POLICIES, TRADE POLICY, TRADE PREFERENCE, TRADE PREFERENCES, TRADE REDUCTION, TRADE VOLUME, TRADE VOLUMES, TRADING, TRANSPORT COSTS, TREATY, UNDUE INFLUENCE, VOLUME OF TRADE, WORLD MARKETS, WORLD TRADE, WORLD TRADE ORGANIZATION,
Acceso en línea:	http://documents.worldbank.org/curated/en/2008/09/9820612/trade-diversion-under-selective-preferential-market-access http://hdl.handle.net/10986/6991
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