Price Effects of Preferential Market Access : Caribbean Basin Initiative and the Apparel Sector
Preferential trade arrangements should be evaluated by their effect on prices rather than by their effect on the total value of trade. This point is emphasized in the theoretical literature but rarely implemented empirically. This article analyzes...
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Oxford University Press on behalf of the World Bank
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2006/05/17753309/price-effects-preferential-market-access-caribbean-basin-initiative-apparel-sector http://hdl.handle.net/10986/16429 |
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okr-10986-164292021-04-23T14:03:29Z Price Effects of Preferential Market Access : Caribbean Basin Initiative and the Apparel Sector Özden, Çaglar Sharma, Gunjan AGRICULTURE APPAREL APPAREL EXPORTS APPAREL MARKET APPAREL PREFERENCES APPAREL QUOTAS APPAREL SECTOR AVERAGE PRICE BORDER PRICE CLIMATE COMPARATIVE ADVANTAGE COMPETITIVE MARKET CONSUMERS CUSTOMS CUSTOMS VALUE DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DOMESTIC PRICE DOMESTIC PRICE INDEX DOMESTIC SOURCES ECONOMIC GROWTH ECONOMIC RECOVERY EXCHANGE RATE EXCHANGE RATES EXPORT PERFORMANCE EXPORT PRICE EXPORT PRICES EXPORT PROCESSING EXPORT PROCESSING ZONES EXPORT VALUE EXPORT VOLUME EXPORT VOLUMES EXPORTERS EXPORTS FREE MARKET FREE MARKET ACCESS FREE TRADE FREE TRADE AGREEMENT FREE TRADE AGREEMENTS FREE TREATMENT GENERALIZED SYSTEM OF PREFERENCES GEOGRAPHIC PROXIMITY HIGH TRADE BARRIERS IMPACT OF TRADE IMPACT OF TRADE POLICIES IMPERFECT COMPETITION IMPORT DATA IMPORT PRICE IMPORT PRICES INCOME INSURANCE INTERNATIONAL ECONOMICS INTERNATIONAL TRADE INTERNATIONAL TRADE COMMISSION INVENTORY LOWER PRICES MARKET ACCESS MARKET POWER MARKET SHARE MOST FAVORED NATION POLICY IMPLICATIONS POSITIVE EFFECTS PREFERENTIAL ACCESS PREFERENTIAL ARRANGEMENTS PREFERENTIAL MARKET ACCESS PREFERENTIAL TARIFF PREFERENTIAL TARIFFS PREFERENTIAL TRADE PREFERENTIAL TRADE ARRANGEMENTS PREFERENTIAL TREATMENT PRICE CHANGE PRICE EFFECT PRICE INCREASE PRICE INCREASES PRICE INDEX PRICE LEVELS PRICE OF IMPORTS PRODUCTION COSTS RECIPROCITY REGIONAL INTEGRATION REGIONALISM RELATIVE PRICE RELATIVE PRICES RETAILING RULES OF ORIGIN SPECIALIZATION SUPPLY CHAIN TARIFF CHANGES TARIFF PREFERENCES TARIFF RATE TARIFF REDUCTION TRADE AGREEMENT TRADE COMMISSION TRADE FLOWS TRADE NEGOTIATIONS TRADE PARTNERSHIP TRADE POLICIES TRADE ¸ POLICIES TRADING PARTNERS TRANSACTION COSTS TRANSPORT COSTS UNILATERAL PREFERENCES VALUE ADDED VALUE OF IMPORTS VALUE OF TRADE VER VOLUNTARY EXPORT RESTRAINTS WAGES WORLD MARKETS WORLD TRADING SYSTEM ZERO TARIFFS Preferential trade arrangements should be evaluated by their effect on prices rather than by their effect on the total value of trade. This point is emphasized in the theoretical literature but rarely implemented empirically. This article analyzes the U.S. Caribbean Basin Initiative's (CBI's) impact on the prices received by eligible apparel exporters. The CBI's apparel preferences are the most important and heavily used unilateral preferences because of high trade barriers imposed on exports from the rest of the world. A fixed effect generalized least squares (GLS) estimation is used to isolate the effects of other factors (such as quality, exchange rates, and transaction costs) and to identify the effects of tariff preferences. CBI exporters capture only about two-thirds of their preference margin despite the high degree of competition among importers. This translates into a 9 percent increase in the relative prices they receive, with some variance across countries and years. Countries specializing in higher value items capture more of the preference margin, and the implementation of the North American Free Trade Agreement (NAFTA) has a negative effect. Removing multifibre arrangement quotas significantly lowers the benefits of CBI preferences. 2013-12-20T19:50:03Z 2013-12-20T19:50:03Z 2006-05-01 Journal Article http://documents.worldbank.org/curated/en/2006/05/17753309/price-effects-preferential-market-access-caribbean-basin-initiative-apparel-sector World Bank Economic Review doi:10.1093/wber/lhj008 http://hdl.handle.net/10986/16429 English en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Oxford University Press on behalf of the World Bank Publications & Research :: Journal Article Publications & Research :: Journal Article Latin America & Caribbean Caribbean |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
AGRICULTURE APPAREL APPAREL EXPORTS APPAREL MARKET APPAREL PREFERENCES APPAREL QUOTAS APPAREL SECTOR AVERAGE PRICE BORDER PRICE CLIMATE COMPARATIVE ADVANTAGE COMPETITIVE MARKET CONSUMERS CUSTOMS CUSTOMS VALUE DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DOMESTIC PRICE DOMESTIC PRICE INDEX DOMESTIC SOURCES ECONOMIC GROWTH ECONOMIC RECOVERY EXCHANGE RATE EXCHANGE RATES EXPORT PERFORMANCE EXPORT PRICE EXPORT PRICES EXPORT PROCESSING EXPORT PROCESSING ZONES EXPORT VALUE EXPORT VOLUME EXPORT VOLUMES EXPORTERS EXPORTS FREE MARKET FREE MARKET ACCESS FREE TRADE FREE TRADE AGREEMENT FREE TRADE AGREEMENTS FREE TREATMENT GENERALIZED SYSTEM OF PREFERENCES GEOGRAPHIC PROXIMITY HIGH TRADE BARRIERS IMPACT OF TRADE IMPACT OF TRADE POLICIES IMPERFECT COMPETITION IMPORT DATA IMPORT PRICE IMPORT PRICES INCOME INSURANCE INTERNATIONAL ECONOMICS INTERNATIONAL TRADE INTERNATIONAL TRADE COMMISSION INVENTORY LOWER PRICES MARKET ACCESS MARKET POWER MARKET SHARE MOST FAVORED NATION POLICY IMPLICATIONS POSITIVE EFFECTS PREFERENTIAL ACCESS PREFERENTIAL ARRANGEMENTS PREFERENTIAL MARKET ACCESS PREFERENTIAL TARIFF PREFERENTIAL TARIFFS PREFERENTIAL TRADE PREFERENTIAL TRADE ARRANGEMENTS PREFERENTIAL TREATMENT PRICE CHANGE PRICE EFFECT PRICE INCREASE PRICE INCREASES PRICE INDEX PRICE LEVELS PRICE OF IMPORTS PRODUCTION COSTS RECIPROCITY REGIONAL INTEGRATION REGIONALISM RELATIVE PRICE RELATIVE PRICES RETAILING RULES OF ORIGIN SPECIALIZATION SUPPLY CHAIN TARIFF CHANGES TARIFF PREFERENCES TARIFF RATE TARIFF REDUCTION TRADE AGREEMENT TRADE COMMISSION TRADE FLOWS TRADE NEGOTIATIONS TRADE PARTNERSHIP TRADE POLICIES TRADE ¸ POLICIES TRADING PARTNERS TRANSACTION COSTS TRANSPORT COSTS UNILATERAL PREFERENCES VALUE ADDED VALUE OF IMPORTS VALUE OF TRADE VER VOLUNTARY EXPORT RESTRAINTS WAGES WORLD MARKETS WORLD TRADING SYSTEM ZERO TARIFFS |
| spellingShingle |
AGRICULTURE APPAREL APPAREL EXPORTS APPAREL MARKET APPAREL PREFERENCES APPAREL QUOTAS APPAREL SECTOR AVERAGE PRICE BORDER PRICE CLIMATE COMPARATIVE ADVANTAGE COMPETITIVE MARKET CONSUMERS CUSTOMS CUSTOMS VALUE DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DOMESTIC PRICE DOMESTIC PRICE INDEX DOMESTIC SOURCES ECONOMIC GROWTH ECONOMIC RECOVERY EXCHANGE RATE EXCHANGE RATES EXPORT PERFORMANCE EXPORT PRICE EXPORT PRICES EXPORT PROCESSING EXPORT PROCESSING ZONES EXPORT VALUE EXPORT VOLUME EXPORT VOLUMES EXPORTERS EXPORTS FREE MARKET FREE MARKET ACCESS FREE TRADE FREE TRADE AGREEMENT FREE TRADE AGREEMENTS FREE TREATMENT GENERALIZED SYSTEM OF PREFERENCES GEOGRAPHIC PROXIMITY HIGH TRADE BARRIERS IMPACT OF TRADE IMPACT OF TRADE POLICIES IMPERFECT COMPETITION IMPORT DATA IMPORT PRICE IMPORT PRICES INCOME INSURANCE INTERNATIONAL ECONOMICS INTERNATIONAL TRADE INTERNATIONAL TRADE COMMISSION INVENTORY LOWER PRICES MARKET ACCESS MARKET POWER MARKET SHARE MOST FAVORED NATION POLICY IMPLICATIONS POSITIVE EFFECTS PREFERENTIAL ACCESS PREFERENTIAL ARRANGEMENTS PREFERENTIAL MARKET ACCESS PREFERENTIAL TARIFF PREFERENTIAL TARIFFS PREFERENTIAL TRADE PREFERENTIAL TRADE ARRANGEMENTS PREFERENTIAL TREATMENT PRICE CHANGE PRICE EFFECT PRICE INCREASE PRICE INCREASES PRICE INDEX PRICE LEVELS PRICE OF IMPORTS PRODUCTION COSTS RECIPROCITY REGIONAL INTEGRATION REGIONALISM RELATIVE PRICE RELATIVE PRICES RETAILING RULES OF ORIGIN SPECIALIZATION SUPPLY CHAIN TARIFF CHANGES TARIFF PREFERENCES TARIFF RATE TARIFF REDUCTION TRADE AGREEMENT TRADE COMMISSION TRADE FLOWS TRADE NEGOTIATIONS TRADE PARTNERSHIP TRADE POLICIES TRADE ¸ POLICIES TRADING PARTNERS TRANSACTION COSTS TRANSPORT COSTS UNILATERAL PREFERENCES VALUE ADDED VALUE OF IMPORTS VALUE OF TRADE VER VOLUNTARY EXPORT RESTRAINTS WAGES WORLD MARKETS WORLD TRADING SYSTEM ZERO TARIFFS Özden, Çaglar Sharma, Gunjan Price Effects of Preferential Market Access : Caribbean Basin Initiative and the Apparel Sector |
| geographic_facet |
Latin America & Caribbean Caribbean |
| description |
Preferential trade arrangements should
be evaluated by their effect on prices rather than by their
effect on the total value of trade. This point is emphasized
in the theoretical literature but rarely implemented
empirically. This article analyzes the U.S. Caribbean Basin
Initiative's (CBI's) impact on the prices received
by eligible apparel exporters. The CBI's apparel
preferences are the most important and heavily used
unilateral preferences because of high trade barriers
imposed on exports from the rest of the world. A fixed
effect generalized least squares (GLS) estimation is used to
isolate the effects of other factors (such as quality,
exchange rates, and transaction costs) and to identify the
effects of tariff preferences. CBI exporters capture only
about two-thirds of their preference margin despite the high
degree of competition among importers. This translates into
a 9 percent increase in the relative prices they receive,
with some variance across countries and years. Countries
specializing in higher value items capture more of the
preference margin, and the implementation of the North
American Free Trade Agreement (NAFTA) has a negative effect.
Removing multifibre arrangement quotas significantly lowers
the benefits of CBI preferences. |
| format |
Journal Article |
| author |
Özden, Çaglar Sharma, Gunjan |
| author_facet |
Özden, Çaglar Sharma, Gunjan |
| author_sort |
Özden, Çaglar |
| title |
Price Effects of Preferential Market Access : Caribbean Basin Initiative and the Apparel Sector |
| title_short |
Price Effects of Preferential Market Access : Caribbean Basin Initiative and the Apparel Sector |
| title_full |
Price Effects of Preferential Market Access : Caribbean Basin Initiative and the Apparel Sector |
| title_fullStr |
Price Effects of Preferential Market Access : Caribbean Basin Initiative and the Apparel Sector |
| title_full_unstemmed |
Price Effects of Preferential Market Access : Caribbean Basin Initiative and the Apparel Sector |
| title_sort |
price effects of preferential market access : caribbean basin initiative and the apparel sector |
| publisher |
Oxford University Press on behalf of the World Bank |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2006/05/17753309/price-effects-preferential-market-access-caribbean-basin-initiative-apparel-sector http://hdl.handle.net/10986/16429 |
| _version_ |
1764433422665646080 |