The Perversity of Preferences : The Generalized System of Preferences and Developing Country Trade Policies, 1976-2000

Industrial countries maintain special tariff preferences, namely the Generalized System of Preferences (GSP), for imports from developing countries. Critics have highlighted the underachieving nature of such preferences, but developing countries co...

Full description

Bibliographic Details
Main Authors:	Ozden, Caglar, Reinhardt, Eric
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	AGRICULTURAL PRODUCTS ANNUAL OBSERVATIONS AVERAGE TARIFFS BARRIERS TO IMPORTS BUSINESS CYCLE CARTEL COMPARATIVE ADVANTAGE COMPETITIVE ADVANTAGE CONDITIONALITY CONSUMERS COUNTRY EXPORTERS COUNTRY IMPORTS CUSTOMS DEVELOPED COUNTRIES DEVELOPMENT DEVELOPMENT POLICIES DOMESTIC DEMAND DOMESTIC FIRMS DOMESTIC MARKET DUTY-FREE ACCESS ECONOMETRIC MODELS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC PERFORMANCE EMPIRICAL STUDIES EQUILIBRIUM EXCESS SUPPLY EXPORT EARNINGS EXPORT GOODS EXPORT INDUSTRIES EXPORT MARKET EXPORT PERFORMANCE EXPORT PRICES EXPORT SECTOR EXPORT SECTORS EXPORTERS EXPORTS FINANCIAL CRISES FOREIGN MARKET FREE ACCESS FREE TRADE FREER TRADE GDP GENERAL EQUILIBRIUM MODEL GENERALIZED SYSTEM OF PREFERENCES GLOBAL TRADE GRAVITY MODEL HUMAN RIGHTS IMPORT BARRIERS IMPORT POLICIES IMPORT PRICES IMPORT SUBSTITUTION IMPORT- COMPETING SECTOR IMPORT-COMPETING PRODUCERS IMPORTS INCOME INCREASING TRADE INDUSTRIALIZATION INEFFICIENCY INTELLECTUAL PROPERTY INTERNATIONAL INSTITUTIONS INTERNATIONAL TRADE LIBERAL TRADE POLICY MARGINAL COST MARGINAL EFFECT MARKET SIZE MFN TARIFFS MULTILATERAL NEGOTIATIONS MULTILATERAL TRADE MULTILATERAL TRADE NEGOTIATIONS OIL OPEC PER CAPITA INCOME POLITICAL ECONOMY PREFERENCE SCHEMES PREFERENTIAL ACCESS PREFERENTIAL MARKET ACCESS PREFERENTIAL STATUS PRODUCERS PRODUCT LEVEL PROTECTION LEVELS PROTECTIONISM PROTECTIONIST POLICIES PROTECTIONIST PRESSURES REAL GDP RECIPROCITY RULES OF ORIGIN STANDARD ERRORS SUNK COSTS TARIFF BARRIERS TARIFF LINES TARIFF PREFERENCES TARIFF PROTECTION TARIFF RATE TARIFF RATES TARIFF REDUCTIONS TARIFF REVENUE TERMS OF TRADE TRADE TRADE BARRIERS TRADE CONCESSIONS TRADE DIVERSION TRADE EXTERNALITIES TRADE FLOWS TRADE LIBERALIZATION TRADE LIBERALIZATION EFFORTS TRADE NEGOTIATIONS TRADE OPENNESS TRADE PARTNERS TRADE POLICIES TRADE POLICY TRADE PREFERENCES TRADE PROTECTION TRADE REGIME TRADE REGIMES TRADE UNIT TRADE VOLUME TRADING PARTNERS TRADING REGIME TRANSPORT COSTS UNILATERAL LIBERALIZATION WORLD ECONOMY WORLD PRICE WORLD PRICES WORLD TRADE WTO
Online Access:	http://documents.worldbank.org/curated/en/2003/01/2120331/perversity-preferences-gsp-developing-country-trade-policies-1976-2000 http://hdl.handle.net/10986/19170

id	okr-10986-19170
recordtype	oai_dc
spelling	okr-10986-191702021-04-23T14:03:41Z The Perversity of Preferences : The Generalized System of Preferences and Developing Country Trade Policies, 1976-2000 Ozden, Caglar Reinhardt, Eric AGRICULTURAL PRODUCTS ANNUAL OBSERVATIONS AVERAGE TARIFFS BARRIERS TO IMPORTS BUSINESS CYCLE CARTEL COMPARATIVE ADVANTAGE COMPETITIVE ADVANTAGE CONDITIONALITY CONSUMERS COUNTRY EXPORTERS COUNTRY IMPORTS CUSTOMS DEVELOPED COUNTRIES DEVELOPMENT DEVELOPMENT POLICIES DOMESTIC DEMAND DOMESTIC FIRMS DOMESTIC MARKET DUTY-FREE ACCESS ECONOMETRIC MODELS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC PERFORMANCE EMPIRICAL STUDIES EQUILIBRIUM EXCESS SUPPLY EXPORT EARNINGS EXPORT GOODS EXPORT INDUSTRIES EXPORT MARKET EXPORT PERFORMANCE EXPORT PRICES EXPORT SECTOR EXPORT SECTORS EXPORTERS EXPORTS FINANCIAL CRISES FOREIGN MARKET FREE ACCESS FREE TRADE FREER TRADE GDP GENERAL EQUILIBRIUM MODEL GENERALIZED SYSTEM OF PREFERENCES GLOBAL TRADE GRAVITY MODEL HUMAN RIGHTS IMPORT BARRIERS IMPORT POLICIES IMPORT PRICES IMPORT SUBSTITUTION IMPORT- COMPETING SECTOR IMPORT-COMPETING PRODUCERS IMPORTS INCOME INCREASING TRADE INDUSTRIALIZATION INEFFICIENCY INTELLECTUAL PROPERTY INTERNATIONAL INSTITUTIONS INTERNATIONAL TRADE LIBERAL TRADE POLICY MARGINAL COST MARGINAL EFFECT MARKET SIZE MFN TARIFFS MULTILATERAL NEGOTIATIONS MULTILATERAL TRADE MULTILATERAL TRADE NEGOTIATIONS OIL OPEC PER CAPITA INCOME POLITICAL ECONOMY PREFERENCE SCHEMES PREFERENTIAL ACCESS PREFERENTIAL MARKET ACCESS PREFERENTIAL STATUS PRODUCERS PRODUCT LEVEL PROTECTION LEVELS PROTECTIONISM PROTECTIONIST POLICIES PROTECTIONIST PRESSURES REAL GDP RECIPROCITY RULES OF ORIGIN STANDARD ERRORS SUNK COSTS TARIFF BARRIERS TARIFF LINES TARIFF PREFERENCES TARIFF PROTECTION TARIFF RATE TARIFF RATES TARIFF REDUCTIONS TARIFF REVENUE TERMS OF TRADE TRADE TRADE BARRIERS TRADE CONCESSIONS TRADE DIVERSION TRADE EXTERNALITIES TRADE FLOWS TRADE LIBERALIZATION TRADE LIBERALIZATION EFFORTS TRADE NEGOTIATIONS TRADE OPENNESS TRADE PARTNERS TRADE POLICIES TRADE POLICY TRADE PREFERENCES TRADE PROTECTION TRADE REGIME TRADE REGIMES TRADE UNIT TRADE VOLUME TRADING PARTNERS TRADING REGIME TRANSPORT COSTS UNILATERAL LIBERALIZATION WORLD ECONOMY WORLD PRICE WORLD PRICES WORLD TRADE WTO Industrial countries maintain special tariff preferences, namely the Generalized System of Preferences (GSP), for imports from developing countries. Critics have highlighted the underachieving nature of such preferences, but developing countries continue to place the GSP at the heart of their agenda in multilateral negotiations. What effect do such preferences have on a recipient's own trade policies? The authors develop and test a simple theoretical model of a small country's trade policy choice, using a dataset of 154 developing countries from 1976 through 2000. They find that countries removed from the GSP adopt more liberal trade policies than those remaining eligible. The results, corrected for endogeneity and robust to numerous alternative measures of trade policy, suggest that developing countries may be best served by full integration into the reciprocity-based world trade regime rather than continued GSP-style special preferences. 2014-08-01T15:24:32Z 2014-08-01T15:24:32Z 2003-01 http://documents.worldbank.org/curated/en/2003/01/2120331/perversity-preferences-gsp-developing-country-trade-policies-1976-2000 http://hdl.handle.net/10986/19170 English en_US Policy Research Working Paper;No. 2955 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
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	AGRICULTURAL PRODUCTS ANNUAL OBSERVATIONS AVERAGE TARIFFS BARRIERS TO IMPORTS BUSINESS CYCLE CARTEL COMPARATIVE ADVANTAGE COMPETITIVE ADVANTAGE CONDITIONALITY CONSUMERS COUNTRY EXPORTERS COUNTRY IMPORTS CUSTOMS DEVELOPED COUNTRIES DEVELOPMENT DEVELOPMENT POLICIES DOMESTIC DEMAND DOMESTIC FIRMS DOMESTIC MARKET DUTY-FREE ACCESS ECONOMETRIC MODELS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC PERFORMANCE EMPIRICAL STUDIES EQUILIBRIUM EXCESS SUPPLY EXPORT EARNINGS EXPORT GOODS EXPORT INDUSTRIES EXPORT MARKET EXPORT PERFORMANCE EXPORT PRICES EXPORT SECTOR EXPORT SECTORS EXPORTERS EXPORTS FINANCIAL CRISES FOREIGN MARKET FREE ACCESS FREE TRADE FREER TRADE GDP GENERAL EQUILIBRIUM MODEL GENERALIZED SYSTEM OF PREFERENCES GLOBAL TRADE GRAVITY MODEL HUMAN RIGHTS IMPORT BARRIERS IMPORT POLICIES IMPORT PRICES IMPORT SUBSTITUTION IMPORT- COMPETING SECTOR IMPORT-COMPETING PRODUCERS IMPORTS INCOME INCREASING TRADE INDUSTRIALIZATION INEFFICIENCY INTELLECTUAL PROPERTY INTERNATIONAL INSTITUTIONS INTERNATIONAL TRADE LIBERAL TRADE POLICY MARGINAL COST MARGINAL EFFECT MARKET SIZE MFN TARIFFS MULTILATERAL NEGOTIATIONS MULTILATERAL TRADE MULTILATERAL TRADE NEGOTIATIONS OIL OPEC PER CAPITA INCOME POLITICAL ECONOMY PREFERENCE SCHEMES PREFERENTIAL ACCESS PREFERENTIAL MARKET ACCESS PREFERENTIAL STATUS PRODUCERS PRODUCT LEVEL PROTECTION LEVELS PROTECTIONISM PROTECTIONIST POLICIES PROTECTIONIST PRESSURES REAL GDP RECIPROCITY RULES OF ORIGIN STANDARD ERRORS SUNK COSTS TARIFF BARRIERS TARIFF LINES TARIFF PREFERENCES TARIFF PROTECTION TARIFF RATE TARIFF RATES TARIFF REDUCTIONS TARIFF REVENUE TERMS OF TRADE TRADE TRADE BARRIERS TRADE CONCESSIONS TRADE DIVERSION TRADE EXTERNALITIES TRADE FLOWS TRADE LIBERALIZATION TRADE LIBERALIZATION EFFORTS TRADE NEGOTIATIONS TRADE OPENNESS TRADE PARTNERS TRADE POLICIES TRADE POLICY TRADE PREFERENCES TRADE PROTECTION TRADE REGIME TRADE REGIMES TRADE UNIT TRADE VOLUME TRADING PARTNERS TRADING REGIME TRANSPORT COSTS UNILATERAL LIBERALIZATION WORLD ECONOMY WORLD PRICE WORLD PRICES WORLD TRADE WTO
spellingShingle	AGRICULTURAL PRODUCTS ANNUAL OBSERVATIONS AVERAGE TARIFFS BARRIERS TO IMPORTS BUSINESS CYCLE CARTEL COMPARATIVE ADVANTAGE COMPETITIVE ADVANTAGE CONDITIONALITY CONSUMERS COUNTRY EXPORTERS COUNTRY IMPORTS CUSTOMS DEVELOPED COUNTRIES DEVELOPMENT DEVELOPMENT POLICIES DOMESTIC DEMAND DOMESTIC FIRMS DOMESTIC MARKET DUTY-FREE ACCESS ECONOMETRIC MODELS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC PERFORMANCE EMPIRICAL STUDIES EQUILIBRIUM EXCESS SUPPLY EXPORT EARNINGS EXPORT GOODS EXPORT INDUSTRIES EXPORT MARKET EXPORT PERFORMANCE EXPORT PRICES EXPORT SECTOR EXPORT SECTORS EXPORTERS EXPORTS FINANCIAL CRISES FOREIGN MARKET FREE ACCESS FREE TRADE FREER TRADE GDP GENERAL EQUILIBRIUM MODEL GENERALIZED SYSTEM OF PREFERENCES GLOBAL TRADE GRAVITY MODEL HUMAN RIGHTS IMPORT BARRIERS IMPORT POLICIES IMPORT PRICES IMPORT SUBSTITUTION IMPORT- COMPETING SECTOR IMPORT-COMPETING PRODUCERS IMPORTS INCOME INCREASING TRADE INDUSTRIALIZATION INEFFICIENCY INTELLECTUAL PROPERTY INTERNATIONAL INSTITUTIONS INTERNATIONAL TRADE LIBERAL TRADE POLICY MARGINAL COST MARGINAL EFFECT MARKET SIZE MFN TARIFFS MULTILATERAL NEGOTIATIONS MULTILATERAL TRADE MULTILATERAL TRADE NEGOTIATIONS OIL OPEC PER CAPITA INCOME POLITICAL ECONOMY PREFERENCE SCHEMES PREFERENTIAL ACCESS PREFERENTIAL MARKET ACCESS PREFERENTIAL STATUS PRODUCERS PRODUCT LEVEL PROTECTION LEVELS PROTECTIONISM PROTECTIONIST POLICIES PROTECTIONIST PRESSURES REAL GDP RECIPROCITY RULES OF ORIGIN STANDARD ERRORS SUNK COSTS TARIFF BARRIERS TARIFF LINES TARIFF PREFERENCES TARIFF PROTECTION TARIFF RATE TARIFF RATES TARIFF REDUCTIONS TARIFF REVENUE TERMS OF TRADE TRADE TRADE BARRIERS TRADE CONCESSIONS TRADE DIVERSION TRADE EXTERNALITIES TRADE FLOWS TRADE LIBERALIZATION TRADE LIBERALIZATION EFFORTS TRADE NEGOTIATIONS TRADE OPENNESS TRADE PARTNERS TRADE POLICIES TRADE POLICY TRADE PREFERENCES TRADE PROTECTION TRADE REGIME TRADE REGIMES TRADE UNIT TRADE VOLUME TRADING PARTNERS TRADING REGIME TRANSPORT COSTS UNILATERAL LIBERALIZATION WORLD ECONOMY WORLD PRICE WORLD PRICES WORLD TRADE WTO Ozden, Caglar Reinhardt, Eric The Perversity of Preferences : The Generalized System of Preferences and Developing Country Trade Policies, 1976-2000
relation	Policy Research Working Paper;No. 2955
description	Industrial countries maintain special tariff preferences, namely the Generalized System of Preferences (GSP), for imports from developing countries. Critics have highlighted the underachieving nature of such preferences, but developing countries continue to place the GSP at the heart of their agenda in multilateral negotiations. What effect do such preferences have on a recipient's own trade policies? The authors develop and test a simple theoretical model of a small country's trade policy choice, using a dataset of 154 developing countries from 1976 through 2000. They find that countries removed from the GSP adopt more liberal trade policies than those remaining eligible. The results, corrected for endogeneity and robust to numerous alternative measures of trade policy, suggest that developing countries may be best served by full integration into the reciprocity-based world trade regime rather than continued GSP-style special preferences.
format	Publications & Research :: Policy Research Working Paper
author	Ozden, Caglar Reinhardt, Eric
author_facet	Ozden, Caglar Reinhardt, Eric
author_sort	Ozden, Caglar
title	The Perversity of Preferences : The Generalized System of Preferences and Developing Country Trade Policies, 1976-2000
title_short	The Perversity of Preferences : The Generalized System of Preferences and Developing Country Trade Policies, 1976-2000
title_full	The Perversity of Preferences : The Generalized System of Preferences and Developing Country Trade Policies, 1976-2000
title_fullStr	The Perversity of Preferences : The Generalized System of Preferences and Developing Country Trade Policies, 1976-2000
title_full_unstemmed	The Perversity of Preferences : The Generalized System of Preferences and Developing Country Trade Policies, 1976-2000
title_sort	perversity of preferences : the generalized system of preferences and developing country trade policies, 1976-2000
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2003/01/2120331/perversity-preferences-gsp-developing-country-trade-policies-1976-2000 http://hdl.handle.net/10986/19170
_version_	1764439241876570112

The Perversity of Preferences : The Generalized System of Preferences and Developing Country Trade Policies, 1976-2000

Similar Items