Arbeitspapier

Special and Differential Treatment for Developing Countries

Special and Differential Treatment for Developing Countries (SDT) constitutes a central feature of the GATT/WTO system. Its formal goal is to foster export-led growth in developing countries. Its theoretical foundations and empirical support are, however, weak at best. In particular, SDT conflicts with the GATT’s two key principles of reciprocity and nondiscrimination, compromising the efficiency of the multilateral trading system. Still, if SDT provisions help those who most need help, sacrificing economic efficiency may be justifiable. However, there are numerous criticisms, on theoretical and empirical grounds, to the premises and the achievements of SDT-based disciplines, casting serious doubt on its effectiveness in helping developing countries trade and grow. For researchers, the good news is that there is plenty of room for progress, with several important areas where our understanding remains unsatisfactory but progress is feasible–that is, where the expected return to research effort seems unusually high.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 5823

Classification
Wirtschaft
Trade Policy; International Trade Organizations
International Institutional Arrangements
Economic Impacts of Globalization: Economic Development
International Linkages to Development; Role of International Organizations
Development Planning and Policy: Trade Policy; Factor Movement; Foreign Exchange Policy
Subject
generalized system of preferences
preferential tariffs
trade policy
World Trade Organization
terms of trade
firm delocation
export-led growth

Event
Geistige Schöpfung
(who)
Ornelas, Emanuel
Event
Veröffentlichung
(who)
Center for Economic Studies and ifo Institute (CESifo)
(where)
Munich
(when)
2016

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Ornelas, Emanuel
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 2016

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