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Losses of tariff preferences and the export performance of less‐developed countries
Author(s) -
Macphee Craig R.,
Oguledo Victor Iwuagwu
Publication year - 1994
Publication title -
journal of international development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.533
H-Index - 66
eISSN - 1099-1328
pISSN - 0954-1748
DOI - 10.1002/jid.3380060402
Subject(s) - tariff , economics , product (mathematics) , international economics , quality (philosophy) , exchange rate , monetary economics , philosophy , geometry , mathematics , epistemology
This paper presents cross‐sectional estimates of influences on the shares of individual LDCs in US import markets during years in which US tariffs rose. The tariff increases were specific to country and product and they resulted from the withdrawal of benefits under the Generalized System of Preferences. The paper confirms the hypotheses that the negative impact of a tariff increase is stronger (a) the more elastic is the import demand, (b) the slower is the growth in demand, and (c) the smaller is the cost or quality advantage of an LDC. The latter is measured by several proxies, such as initial market shares and exchange rate changes.