Geopolitical Interests and Preferential Access to U.S. Markets

The United States imports around 25 percent of its merchandise under some form of preferential trade regime. The authors examine both the origins and consequences of U.S. trade preferences in the context of the gravity model of international trade. First, they provide estimates of the impact of pref...

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Main Authors:	Lederman, Daniel, Özden, Çaglar
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	AGRICULTURE BENEFICIARIES BILATERAL TRADE CBI CLASSIFICATION COMPLIANCE COSTS CUSTOMS CUSTOMS UNIONS DEVELOPED COUNTRIES EXPORT VALUE EXPORTS FREE TRADE FREE TRADE AREAS GDP PER CAPITA GENERALIZED SYSTEM OF PREFERENCES GNP IMPORTS INCOME INSTRUMENTAL VARIABLES INSURANCE INTERNATIONAL TRADE NON-TARIFF BARRIERS OIL PER CAPITA INCOME POSITIVE EFFECTS PROGRAMS REAL GDP SELECTION BIAS TARIFF BARRIERS THEORETICAL MODELS TRADE ARRANGEMENTS TRADE BARRIERS TRADE PERFORMANCE TRADE POLICIES TRADE POLICY TRADE PREFERENCES TRADE PROMOTION TRADE REGIME TRADE REGIMES TRADE VOLUME TRANSACTION COSTS TRANSACTIONS COSTS TREATMENT EFFECTS WTO
Online Access:	http://documents.worldbank.org/curated/en/2005/03/5637037/geopolitical-interests-preferential-access-markets http://hdl.handle.net/10986/8858

id	okr-10986-8858
recordtype	oai_dc
spelling	okr-10986-88582021-04-23T14:02:42Z Geopolitical Interests and Preferential Access to U.S. Markets Lederman, Daniel Özden, Çaglar AGRICULTURE BENEFICIARIES BILATERAL TRADE CBI CLASSIFICATION COMPLIANCE COSTS CUSTOMS CUSTOMS UNIONS DEVELOPED COUNTRIES EXPORT VALUE EXPORTS FREE TRADE FREE TRADE AREAS GDP PER CAPITA GENERALIZED SYSTEM OF PREFERENCES GNP IMPORTS INCOME INSTRUMENTAL VARIABLES INSURANCE INTERNATIONAL TRADE NON-TARIFF BARRIERS OIL PER CAPITA INCOME POSITIVE EFFECTS PROGRAMS REAL GDP SELECTION BIAS TARIFF BARRIERS THEORETICAL MODELS TRADE ARRANGEMENTS TRADE BARRIERS TRADE PERFORMANCE TRADE POLICIES TRADE POLICY TRADE PREFERENCES TRADE PROMOTION TRADE REGIME TRADE REGIMES TRADE VOLUME TRANSACTION COSTS TRANSACTIONS COSTS TREATMENT EFFECTS WTO The United States imports around 25 percent of its merchandise under some form of preferential trade regime. The authors examine both the origins and consequences of U.S. trade preferences in the context of the gravity model of international trade. First, they provide estimates of the impact of preferential trade regimes in terms of access to U.S. markets while controlling for geo-strategic interests that determine the countries that are offered commercial preferences. Second, the authors consider not only country eligibility but also the extent of utilization of these programs. Third, they provide new estimates of the impact of transport and transactions costs beyond distance. In the standard gravity estimation, the authors find that beneficiaries of these preferences, except GSP, export 2-3 times more than the excluded countries, after controlling for country and product characteristics. Nonetheless, the estimated effects of these programs are lower when controlling for utilization ratios and selection biases due to the correlation between geopolitical interests and the standard explanatory variables used in the gravity model of trade, such as countries' geographic distance from the United States. 2012-06-22T20:13:45Z 2012-06-22T20:13:45Z 2005-03 http://documents.worldbank.org/curated/en/2005/03/5637037/geopolitical-interests-preferential-access-markets http://hdl.handle.net/10986/8858 English Policy Research Working Paper; No. 3531 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research United States
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	AGRICULTURE BENEFICIARIES BILATERAL TRADE CBI CLASSIFICATION COMPLIANCE COSTS CUSTOMS CUSTOMS UNIONS DEVELOPED COUNTRIES EXPORT VALUE EXPORTS FREE TRADE FREE TRADE AREAS GDP PER CAPITA GENERALIZED SYSTEM OF PREFERENCES GNP IMPORTS INCOME INSTRUMENTAL VARIABLES INSURANCE INTERNATIONAL TRADE NON-TARIFF BARRIERS OIL PER CAPITA INCOME POSITIVE EFFECTS PROGRAMS REAL GDP SELECTION BIAS TARIFF BARRIERS THEORETICAL MODELS TRADE ARRANGEMENTS TRADE BARRIERS TRADE PERFORMANCE TRADE POLICIES TRADE POLICY TRADE PREFERENCES TRADE PROMOTION TRADE REGIME TRADE REGIMES TRADE VOLUME TRANSACTION COSTS TRANSACTIONS COSTS TREATMENT EFFECTS WTO
spellingShingle	AGRICULTURE BENEFICIARIES BILATERAL TRADE CBI CLASSIFICATION COMPLIANCE COSTS CUSTOMS CUSTOMS UNIONS DEVELOPED COUNTRIES EXPORT VALUE EXPORTS FREE TRADE FREE TRADE AREAS GDP PER CAPITA GENERALIZED SYSTEM OF PREFERENCES GNP IMPORTS INCOME INSTRUMENTAL VARIABLES INSURANCE INTERNATIONAL TRADE NON-TARIFF BARRIERS OIL PER CAPITA INCOME POSITIVE EFFECTS PROGRAMS REAL GDP SELECTION BIAS TARIFF BARRIERS THEORETICAL MODELS TRADE ARRANGEMENTS TRADE BARRIERS TRADE PERFORMANCE TRADE POLICIES TRADE POLICY TRADE PREFERENCES TRADE PROMOTION TRADE REGIME TRADE REGIMES TRADE VOLUME TRANSACTION COSTS TRANSACTIONS COSTS TREATMENT EFFECTS WTO Lederman, Daniel Özden, Çaglar Geopolitical Interests and Preferential Access to U.S. Markets
geographic_facet	United States
relation	Policy Research Working Paper; No. 3531
description	The United States imports around 25 percent of its merchandise under some form of preferential trade regime. The authors examine both the origins and consequences of U.S. trade preferences in the context of the gravity model of international trade. First, they provide estimates of the impact of preferential trade regimes in terms of access to U.S. markets while controlling for geo-strategic interests that determine the countries that are offered commercial preferences. Second, the authors consider not only country eligibility but also the extent of utilization of these programs. Third, they provide new estimates of the impact of transport and transactions costs beyond distance. In the standard gravity estimation, the authors find that beneficiaries of these preferences, except GSP, export 2-3 times more than the excluded countries, after controlling for country and product characteristics. Nonetheless, the estimated effects of these programs are lower when controlling for utilization ratios and selection biases due to the correlation between geopolitical interests and the standard explanatory variables used in the gravity model of trade, such as countries' geographic distance from the United States.
format	Publications & Research :: Policy Research Working Paper
author	Lederman, Daniel Özden, Çaglar
author_facet	Lederman, Daniel Özden, Çaglar
author_sort	Lederman, Daniel
title	Geopolitical Interests and Preferential Access to U.S. Markets
title_short	Geopolitical Interests and Preferential Access to U.S. Markets
title_full	Geopolitical Interests and Preferential Access to U.S. Markets
title_fullStr	Geopolitical Interests and Preferential Access to U.S. Markets
title_full_unstemmed	Geopolitical Interests and Preferential Access to U.S. Markets
title_sort	geopolitical interests and preferential access to u.s. markets
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2005/03/5637037/geopolitical-interests-preferential-access-markets http://hdl.handle.net/10986/8858
_version_	1764407024226926592

Geopolitical Interests and Preferential Access to U.S. Markets

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