1 option
Trade Preferences to Small Developing Countries and the Welfare Costs of Lost Multilateral Liberalization / Limao, Nuno
World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online
View online- Format:
- Book
- Government document
- Author/Creator:
- Limão, Nuno.
- Series:
- Policy research working papers.
- World Bank e-Library.
- Language:
- English
- Subjects (All):
- Balance Of Payments.
- Competitive Position.
- Currencies and Exchange Rates.
- Debt Markets.
- Economic Theory and Research.
- Emerging Markets.
- Export Markets.
- Finance and Financial Sector Development.
- Free Trade.
- International Economics & Trade.
- International Trade and Trade Rules.
- Law and Development.
- Macroeconomics and Economic Growth.
- Market Access.
- Multilateral Liberalization.
- Multilateral Trade Liberalization.
- Political Economy.
- Preferential Access.
- Preferential Tariff.
- Preferential Trade.
- Preferential Trade Agreements.
- Preferential Trade Liberalization.
- Private Sector Development.
- Public Sector Development.
- Tariff.
- Tariff Concessions.
- Tariffs.
- Tax Law.
- Trade.
- Trade and Regional Integration.
- Trade Negotiations.
- Trade Policy.
- Trade Preferences.
- Unilateral Trade.
- World Markets.
- World Trade.
- Local Subjects:
- Balance Of Payments.
- Competitive Position.
- Currencies and Exchange Rates.
- Debt Markets.
- Economic Theory and Research.
- Emerging Markets.
- Export Markets.
- Finance and Financial Sector Development.
- Free Trade.
- International Economics & Trade.
- International Trade and Trade Rules.
- Law and Development.
- Macroeconomics and Economic Growth.
- Market Access.
- Multilateral Liberalization.
- Multilateral Trade Liberalization.
- Political Economy.
- Preferential Access.
- Preferential Tariff.
- Preferential Trade.
- Preferential Trade Agreements.
- Preferential Trade Liberalization.
- Private Sector Development.
- Public Sector Development.
- Tariff.
- Tariff Concessions.
- Tariffs.
- Tax Law.
- Trade.
- Trade and Regional Integration.
- Trade Negotiations.
- Trade Policy.
- Trade Preferences.
- Unilateral Trade.
- World Markets.
- World Trade.
- Physical Description:
- 1 online resource (34 pages)
- Place of Publication:
- Washington, D.C., The World Bank, 2005
- System Details:
- data file
- Summary:
- The proliferation of preferential trade liberalization over the last 20 years has raised the question of whether it slows down multilateral trade liberalization. Recent theoretical and empirical evidence indicates this is the case even for unilateral preferences that developed countries provide to small and poor countries but there is no estimate of the resulting welfare costs. To avoid this stumbling block effect we suggest replacing unilateral preferences by a fixed import subsidy. We argue that this scheme would reduce the drag of preferences on multilateral liberalization and generate a Pareto improvement. More importantly, we provide the first estimates of the welfare cost of preferential liberalization as a stumbling block to multilateral liberalization. By combining recent estimates of the stumbling block effect of preferences with data for 170 countries and over 5,000 products we calculate the welfare effects of the United States, European Union and Japan switching from unilateral preferences to Least Developed Countries to the import subsidy scheme. Even in a model with no dynamic gains to trade we find that the switch produces an annual net welfare gain for the 170 countries (USD 4,354 million) and for each group: the United States, European Union and Japan (USD 2,934 million), Least Developed Countries (USD 520 million) and the rest of the world (USD 900 million).
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.