Will the Doha Round Lead to Preference Erosion?

Amiti, Mary; Romalis, John

doi:10.1057/palgrave.imfsp.9450009

Cited by 14 publications

(3 citation statements)

References 10 publications

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“…The results hold for all our 4 main variables Market Access, Border Administration, Transport and Communication Infrastructure and Business Environment in table (3) and (4) excluding the results of exporter and importer market access which show significant with a negative sign. The negative sign for market access is reasonable when developing and least developed countries that previously have preferential trade access obtain additional market access (Djankov, Freund, & Pham, 2010;Amiti & Romalis, 2007). The first point to note is that all the coefficients in PPML are significantly different than those resulting from OLS estimates.…”

Section: Resultsmentioning

confidence: 94%

“…Moreover, delays are higher than tariffs faced by developing country exporters and delay in processing cargo can be equivalent to a country distancing itself from its trade partners by about 70 km (Djankov, Freund, & Pham, 2010;Hummels, 2007). Although the Doha Round was successful; however, the tariff cut contributed relatively small to increase the exports in developing countries (Amiti & Romalis, 2007). Figure 1 shows the world, developing and developed countries cost to export and import per container.…”

Section: Introductionmentioning

confidence: 99%

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Impact Of Trade Facilitation On Extensive Margin: A Ppml Panel Gravity Equation Approach

Alaamshani

Hamzah

Kaliappan

et al. 2020

Preprint

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This paper examines the link between trade facilitation and extensive margin for 111 countries over the period of 2008 to 2014. The study employs a panel pseudo-maximum likelihood (PPML) method to estimate the model. We measure trade facilitation using more comprehensive Enabling Trade Index (ETI); market access, border administration, transport and communication infrastructure, and business environment. The novelty in using ETI is that the index takes into account the effects of factors, policies, and services by facilitating the free flow of goods over borders to the destination. The paper has four major findings. Our results highlight that better trade facilitation leads the countries to export; import became more diversified with a wider range of products. Second, improvement in the business environment and transport and communication infrastructure in trade facilitation yield the highest return in terms of increasing the number of exported products. Third, border administration as the second most important factor in affecting extensive margin. Finally, despite economic integration, there is a considerably stronger effect on the side of exporter's trade facilitation, which shows large unexploited gains, to be reaped on the side of exporter countries trade facilitation.

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Section: Resultsmentioning

confidence: 94%

Section: Introductionmentioning

confidence: 99%

Impact Of Trade Facilitation On Extensive Margin: A Ppml Panel Gravity Equation Approach

Alaamshani

Hamzah

Kaliappan

et al. 2020

Preprint

View full text Add to dashboard Cite

show abstract

“…For a discussion on preference erosion, see e.g. Francois et al (2006), Alexandraki and Lankes (2004), Amiti and Romalis (2007) or Inama (2003).…”

Section: Preference Marginsmentioning

confidence: 99%

From Trade Preferences to Trade Facilitation: Taking Stock of the Issues

Persson

2012

Economics

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The objective of the paper is to explore and give an overview of two central policy alternatives to improve the integration between the European Union and developing countries by removing barriers to trade: trade preferences and trade facilitation. The author reviews the relevant literatures and discusses the issues which constitute problems or opportunities for practitioners and researchers in both areas. She concludes that while at least some trade preferences actually have been less of a failure than their reputation suggests, trade facilitation is a far more promising policy option for the future. IntroductionThe European Union (EU) is the largest trading partner for many of the world's developing countries, but there is nevertheless a large potential to expand that trade. Given that increased trade is widely believed to be one of the keys to alleviating poverty and improving standards of living in developing countries, from a policy perspective it is crucial to understand the options available for economic integration between the EU and developing countries. The objective of this paper is therefore to explore and give an overview of two central policy alternatives to improve the integration between the EU and developing countries by removing barriers to trade: trade preferences and trade facilitation. Nonreciprocal trade preferences for low-and middle-income countries have been used by the European Union since at least the 1960s, and have in a broader sense been at the heart of the North-South trade policy debate for the last half century. By contrast, trade facilitation, i.e. loosely speaking cutting red tape at the border, is a relatively new issue, but one that has quickly risen high on the policy agenda. The paper starts by defining what trade preferences are and what they are meant to achieve, and then puts this policy option into its historical context. Noting that many commentators tend to regard trade preferences as a failed policy -something which interestingly is not necessarily what the reviewed empirical research finds -the paper discusses several dimensions that may be important when determining preferences' trade-creating potential.The paper then moves on to discuss how to define trade facilitation, outline why and how inefficient trade procedures constitute costs for traders and give an overview of what the likely economic effects are of reform in the area. In particular, the empirical literature on trade facilitation is reviewed, including the few papers that explicitly link trade facilitation and European integration. This section also gives examples of concrete measures that governments could take to reduce transaction costs related to inefficient trade procedures, and it closes by considering how to properly measure trade facilitation, and what kind of data researchers would need to better be able to analyze the causal effects.The last section summarizes the historic shift from a focus on trade preferences in trade relations between industrialized and developing countries to a fo...

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Preference erosion and the developing countries exports to the EU: a dynamic panel gravity approach

2012

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Since 2004 there has been a sharp decrease in border protection for the EU rice industry. Because the EU grants trade preferences to a considerable number of rice exporting developing countries, the reform implied preference erosion as well. By addressing the impact of preference erosion on developing countries rice exports to the EU, this paper contributes two original insights to the literature: first, by proposing a new empirical approach to compute the preference margin when tariff rate quotas are in force which is based on the assumption of the existence of fixed costs and economies of scale in international trade; second, by estimating the trade elasticities of preferences by means of a dynamic panel gravity equation to deal with the issues of endogeneity of preferences and persistency in bilateral trade flows. The results show that the way preference margins are calculated matters significantly when assessing the existence and extent of their erosion and the values of trade elasticities. Finally, the estimations highlight the fact that the impact of preferences is still very strong for some of the countries concerned.

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Will the Doha Round Lead to Preference Erosion?

Cited by 14 publications

References 10 publications

Impact Of Trade Facilitation On Extensive Margin: A Ppml Panel Gravity Equation Approach

Impact Of Trade Facilitation On Extensive Margin: A Ppml Panel Gravity Equation Approach

From Trade Preferences to Trade Facilitation: Taking Stock of the Issues

Preference erosion and the developing countries exports to the EU: a dynamic panel gravity approach

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