The DR-CAFTA and the Extensive Margin : A Firm-level Analysis

The DR-CAFTA and the Extensive Margin : A Firm-level Analysis

This paper examines the export behavior of Dominican Republic exporters following the implementation of the Dominican Republic-Central America Free Trade Agreement in 2007. Using a firm-level dataset for 2002-2009, the authors investigate the effec...

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Bibliographic Details
Main Authors: Molina, Ana Cristina, Bussolo, Maurizio, Iacovone, Leonardo
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
AGGREGATE EXPORTS
AGRICULTURAL PRODUCTS
APPAREL
APPAREL EXPORTS
BILATERAL TRADE
BUSINESS ENVIRONMENT
CENTRAL BANK
COMMON MARKET
COMPARATIVE ADVANTAGE
COMPARATIVE ADVANTAGE INDEX
COMPARATIVE DISADVANTAGE
COMPETITIVENESS
CREDIT CONSTRAINTS
CUSTOMS
CUSTOMS AUTHORITIES
DEVELOPED COUNTRIES
DEVELOPING COUNTRIES
DEVELOPMENT BANK
DUTY FREE
DUTY REDUCTION
ECONOMIC CRISIS
ECONOMIC POLICY
EQUILIBRIUM
EXCHANGE RATE
EXCHANGE RATE DEPRECIATION
EXPORT COSTS
EXPORT DEMAND
EXPORT DIVERSIFICATION
EXPORT DYNAMICS
EXPORT FLOWS
EXPORT GROWTH
EXPORT MARKET
EXPORT MARKETS
EXPORT PATTERNS
EXPORT PERFORMANCE
EXPORT SECTORS
EXPORT VALUE
EXPORT ZONE
EXPORTER
EXPORTERS
EXPORTS
FEDERAL RESERVE
FEDERAL RESERVE BANK
FOREIGN MARKETS
FREE ACCESS
FREE TRADE
FREE TRADE AGREEMENT
FREE TREATMENT
IMPACT OF TRADE
IMPORT COSTS
IMPORT PRICES
IMPORT TARIFF
IMPORT TARIFFS
IMPORTS
INTERNATIONAL BANK
INTERNATIONAL TRADE
MARKET ACCESS
MARKET DIVERSIFICATION
MARKET ENTRY
MARKET POSITION
NON-TARIFF BARRIERS
POLITICAL ECONOMY
PREFERENTIAL ACCESS
PRICE FLUCTUATIONS
REGIONAL INTEGRATION
REGIONAL TRADE
REGIONAL TRADE AGREEMENTS
RULES OF ORIGIN
SALE
SALES
SPREAD
TARIFF BARRIERS
TARIFF CUTS
TARIFF DATA
TARIFF LEVELS
TARIFF PREFERENCES
TARIFF REDUCTION
TARIFF REDUCTIONS
TARIFF SCHEDULE
TARIFF SCHEDULES
TOTAL SALES
TRADE AGREEMENT
TRADE BARRIERS
TRADE COSTS
TRADE CREATION
TRADE DATA
TRADE DIVERSIFICATION
TRADE DIVERSION
TRADE EFFECTS
TRADE EXPANSION
TRADE FLOWS
TRADE LIBERALIZATION
TRADE PARTNERS
TRADE PARTNERSHIP
TRADE POLICY
TRADE PREFERENCES
TRADE REGIME
TRADE RELATIONSHIP
TRADE RELATIONSHIPS
TRADE VALUE
TRANSPORT COSTS
TREATY
TRUST FUND
VALUE OF EXPORTS
WORLD TRADE
WORLD TRADE ORGANIZATION
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100827150309
http://hdl.handle.net/10986/3889
Description
Summary:This paper examines the export behavior of Dominican Republic exporters following the implementation of the Dominican Republic-Central America Free Trade Agreement in 2007. Using a firm-level dataset for 2002-2009, the authors investigate the effects of a tariff reduction on the extensive margin. The analysis distinguishes the impact on the entry of new firms, exports of new products, and entry into the Agreement s markets. The paper analyzes whether the agreement prevents incumbent exporters from exiting the market. The results suggest that tariff cuts had a positive although very small effect on the extensive margin. A decline in tariffs also seems to reduce the probability of exit, but the effect is also small. The evidence calls for complementary policies aiming at helping exporters maximize the benefits of the agreement.

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