The Not-So-Generalized Effects of the Generalized System of Preferences

Arbeitspapier

We use an empirical gravity equation approach to study how nonreciprocal trade preferences (NRTPs), enacted mainly through the Generalized System of Preferences, affect the exports of the beneficiary nations. In line with existing studies, the average trade effect stemming from nonreciprocal preferences is highly unstable across specifications. However, once we allow for heterogeneous effects, results become robust and economically important. Specifically, NRTPs have a strong effect on the exports of beneficiaries when they are members of the World Trade Organization and are very poor. Not-so-poor beneficiaries also expand foreign sales, but only if they are not WTO members. For all others, the average export effects of NRTPs are mute.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 7304

Classification and Topics

• Classification: Wirtschaft ; Trade Policy; International Trade Organizations ; Empirical Studies of Trade ; Economic Integration ; 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: trade preferences ; gravity equation ; trade policy ; nonreciprocity ; GSP

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ornelas, Emanuel ; Ritel, Marcos
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2018

Further information

• Handle: http://hdl.handle.net/10419/185502
• Last update: 10.03.2025, 11:44 AM CET