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Export Competitiveness of Developing Countries and US Trade Policy
Author(s) -
Hakobyan Shushanik
Publication year - 2017
Publication title -
the world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/twec.12443
Subject(s) - tariff , revocation , developing country , rules of origin , economics , international economics , value (mathematics) , international trade , market share , market access , business , economic growth , finance , ecology , machine learning , computer science , overhead (engineering) , biology , agriculture , operating system
This paper examines the impact of the revocation of tariff exemptions on exports of developing countries using data from cases of the Competitive Needs Limits (CNL), a feature of the US Generalized System of Preferences (GSP). Competitive Needs Limits are arguably imposed on ‘super competitive’ GSP beneficiaries who no longer need the preferential treatment, and aim to reserve the GSP benefits for other GSP eligible countries. The findings suggest that being excluded from the GSP as a result of a CNL induces a large and significant drop in US imports from affected countries, both in value and as a share of total US imports, and much of their market share is captured by non‐GSP countries, contrary to the policy objectives of CNLs.