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Effects of STABEX on Cotton Imports of the European Community
Author(s) -
Sissoko Macki M.,
Duffy Patricia A.
Publication year - 1993
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.2307/1349456
Subject(s) - earnings , european community , european market , payment , international trade , international economics , economics , transfer payment , business , home market , market economy , finance , welfare
An Armington approach was used to analyze the effects of the STABEX system on the cotton imports of the European Community. STABEX, a provision of the Lome Conventions, provides transfer payments from the European Community to certain former colonies when export earnings of protected commodities experience a shortfall. Since its inception, STABEX appears to have increased the market share of certain former European colonies at the expense of other regions, mostly composed of third world countries.