When are tariff cuts not enough? Heterogeneous effects of trade preferences for the least developed countries

A-Tier
Journal: Journal of International Economics
Year: 2024
Volume: 152
Issue: C

Authors (3)

Forge, Fabien (not in RePEc) Garred, Jason (Université d'Ottawa) Kwon, Kyae Lim (not in RePEc)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Poor countries export a remarkably narrow range of products. To what extent have trade preferences targeted to the least developed countries (LDCs) changed this situation? We study a large set of recent reforms to the LDC trade preferences offered by OECD countries. Leveraging trade policy variation by importer, exporter, product and year, we show that tariff reductions have increased the prevalence of positive trade flows. However, new flows have been far more likely to emerge in cases with previous ‘export experience’, i.e. where countries already exported the same product to another OECD country, or exported a related product to the same importer. So this wave of tariff cuts for LDCs has resulted in an extension of existing patterns of trade rather than wider export diversification.

Technical Details

RePEc Handle
repec:eee:inecon:v:152:y:2024:i:c:s0022199624000989
Journal Field
International
Author Count
3
Added to Database
2026-01-25