The trade impact of European Union agricultural preferences

Cipollina, Maria; Salvatici, Luca

doi:10.1080/17487870903546259

Cited by 47 publications

(29 citation statements)

References 31 publications

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“…Although the coverage rate of agricultural products in the preferential treatment falls significantly short of the national average, duty-free imports turn out to be effective motivators of trade with the LDCs. Similar results have been recorded in the literature (Cipollina and Salvatici 2010;Raimondi and Olper 2011). 8 Potential explanations of the relatively weak fitting of a gravity model include a high export concentration and rigidity (UNDP 2011).…”

Section: Model Estimation and Resultssupporting

confidence: 92%

Determinants of the Korean agricultural trade with the LDCs and the OECD countries

Lee¹,

Lim²

2014

AGR ECON-CZECH

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Abstract:Th e study aims to analyze Korea's import trade in agricultural products with (i) the least developed countries (LDCs) and (ii) the Organization for Economic Co-operation and Development (OECD) countries. Extended versions of a gravity model are adopted and the balanced panel data for the unilateral trade over the period of 2003 to 2008 are constructed using the Harmonized System Codes. Th e Heckman two-stage analysis is incorporated to detect the potential selection bias arising from many zero trades. We fi nd that only preferential tariff s on the LDCs have signifi cantly contributed to the trade fl ows. However, in contrast, gross domestic products (GDPs), free trade agreements (FTAs), the applied tariff rates, and the exchange rates turn out to be statistically signifi cant in the trade with the OECD countries, thus highlighting the possibility of the potential trade benefi ts associated with the trade policy reforms. Th e study is unique in that it empirically estimates the determinants of agricultural trade between the LDCs and developed countries and reveals the potential eff ectiveness of the preferential treatment and the implementation of the trade policy reforms.

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Section: Model Estimation and Resultssupporting

confidence: 92%

Determinants of the Korean agricultural trade with the LDCs and the OECD countries

Lee¹,

Lim²

2014

AGR ECON-CZECH

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“…Second, the EK-Tobit, proposed by Eaton and Kortum (2001) and supported in simulations performed by Head and Mayer (2013) is also used. The procedure assumes that there is a minimum level of trade that falls below the observed minimum of trade for a given exporter, say X ij , if "ideal" trade falls below this level we will observe X ij =0.…”

Section: Robustnessmentioning

confidence: 99%

A panel data analysis of trade creation and trade diversion effects: The case of ASEAN–China Free Trade Area

Yang

Martínez‐Zarzoso

2014

China Economic Review

183

150

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This study uses a theoretically justified gravity model of trade to examine the impact of the ASEAN-China Free Trade Agreement (ACFTA) on exports, focusing on trade creation and diversion effects. The model is tested on a sample of 31 countries over the period dating from 1995 to 2010 using aggregated and disaggregated export data for agricultural and manufactured goods and within manufactures for chemical products, as well as for machinery and transport equipment. In order to obtain unbiased estimates, multilateral resistance terms are included as regressors and the endogeneity bias of the FTA variables is addressed by controlling for the unobserved specific heterogeneity that is specific to each trade flow. A Multinomial PML is also applied to solve the zero trade issue and the presence of heteroskedasticity. The results indicate that ACFTA leads to substantial and significant trade creation. Using disaggregated data, the significant and positive relationship between exports and ACFTA is confirmed in the case of both agricultural and manufactured goods, as well as in the case of the most important manufacturing industries, namely, chemical products and machinery and transport equipment.

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“…Products are classified into two groups according to the depth of the tariff cuts: non-sensitive products (3300), which receive duty-free market access, and sensitive products (3700), including most agricultural products, which benefit from a flat rate reduction of 3.5%. The EBA considerably improved the extent of preferential market access granted to LDCs and, in 2002, duty-free access with no restrictions on quantity was extended to all products except bananas, which have only been allowed since 2006, and rice and sugar where tariffs have been reduced gradually, reaching zero in 2009 (Cipollina and Salvatici, 2010).…”

Section: Challenges For Eu Trade Policy In the International Contextmentioning

confidence: 99%

Re-Examining EU Policies from a Global Perspective

Răileanu-Szeles¹

2013

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The trade impact of European Union agricultural preferences

Cited by 47 publications

References 31 publications

Determinants of the Korean agricultural trade with the LDCs and the OECD countries

Determinants of the Korean agricultural trade with the LDCs and the OECD countries

A panel data analysis of trade creation and trade diversion effects: The case of ASEAN–China Free Trade Area

Re-Examining EU Policies from a Global Perspective

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