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...

Full description

Bibliographic Details
Main Authors: Molina, Ana Cristina, Bussolo, Maurizio, Iacovone, Leonardo
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
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
id okr-10986-3889
recordtype oai_dc
spelling okr-10986-38892021-04-23T14:02:13Z The DR-CAFTA and the Extensive Margin : A Firm-level Analysis Molina, Ana Cristina Bussolo, Maurizio Iacovone, Leonardo 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 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. 2012-03-19T18:41:38Z 2012-03-19T18:41:38Z 2010-06-01 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 English Policy Research working paper ; no. WPS 5340 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Latin America & Caribbean Caribbean Central America Dominican Republic
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic 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
spellingShingle 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
Molina, Ana Cristina
Bussolo, Maurizio
Iacovone, Leonardo
The DR-CAFTA and the Extensive Margin : A Firm-level Analysis
geographic_facet Latin America & Caribbean
Caribbean
Central America
Dominican Republic
relation Policy Research working paper ; no. WPS 5340
description 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.
format Publications & Research :: Policy Research Working Paper
author Molina, Ana Cristina
Bussolo, Maurizio
Iacovone, Leonardo
author_facet Molina, Ana Cristina
Bussolo, Maurizio
Iacovone, Leonardo
author_sort Molina, Ana Cristina
title The DR-CAFTA and the Extensive Margin : A Firm-level Analysis
title_short The DR-CAFTA and the Extensive Margin : A Firm-level Analysis
title_full The DR-CAFTA and the Extensive Margin : A Firm-level Analysis
title_fullStr The DR-CAFTA and the Extensive Margin : A Firm-level Analysis
title_full_unstemmed The DR-CAFTA and the Extensive Margin : A Firm-level Analysis
title_sort dr-cafta and the extensive margin : a firm-level analysis
publishDate 2012
url 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
_version_ 1764388868545576960