Premium
Diversion de commerce quand il y a accès sélectif préférentiel aux marchés .
Author(s) -
Borchert Ingo
Publication year - 2009
Publication title -
canadian journal of economics/revue canadienne d'économique
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 69
eISSN - 1540-5982
pISSN - 0008-4085
DOI - 10.1111/j.1540-5982.2009.01549.x
Subject(s) - beneficiary , trade creation , trade diversion , international economics , developing country , market access , disadvantaged , economics , trade barrier , business , panel data , international trade , international free trade agreement , economic growth , geography , econometrics , finance , archaeology , agriculture
The European Community (EC) operates a multi‐layered GSP scheme in which different groups of developing countries are granted varying degrees of market access. This paper analyzes the question of trade diversion among different categories of beneficiary countries ensuing from the selectivity of preferential market access. Evidence from a disaggregated panel data analysis reveals sizable intra‐developing country trade diversion. The losses for relatively disadvantaged countries in terms of forgone trade volume are estimated to range between about 2% to 20% of their total trade with the EC. The distortions are driven by highly substitutable, mostly labour‐intensive commodities.