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A DIFFUSION MODEL OF THE PROCESS OF IMPLEMENTING THE CARIBBEAN BASIN ECONOMIC RECOVERY ACT
Author(s) -
CLARK Don P.
Publication year - 1997
Publication title -
the developing economies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.305
H-Index - 30
eISSN - 1746-1049
pISSN - 0012-1533
DOI - 10.1111/j.1746-1049.1997.tb00844.x
Subject(s) - beneficiary , tariff , process (computing) , diffusion , business , international economics , economics , finance , computer science , physics , thermodynamics , operating system
This paper uses a two‐stage approach to investigate the process of adopting trade provisions of the Caribbean Basin Economic Recovery Act (CBERA), and to identify factors which influence the dynamic adoption process. First, logistic growth functions of the share of preferential exports in total exports over time are estimated to provide measures of the adoption rate and upper limit participation value for each CBERA beneficiary. The second step relates these estimated parameters to country‐specific characteristics to identify factors responsible for intercountry differences in CBERA participation. Results indicate that the process of adopting provisions of a tariff preference scheme mirrors a dynamic diffusion process whereby beneficiaries increase their share of preferential exports in total exports to the United States over time.