The Perversity of Preferences: The Generalized System of Preferences and Developing Country Trade Policies, 1976–2000 [book]

Caglar Ozden, Eric Reinhardt
2003 Policy Research Working Papers  
Industrial countries maintain special tariff preferences, country's trade policy choice, using a dataset namely the Generalized System of Preferences (GSP), for of 154 developing countries from 1976 through 2000. imports from developing countries. Critics have They find that countries removed from the GSP adopt highlighted the underachieving nature of such more liberal trade policies than those remaining eligible. preferences, but developing countries continue to place The results, corrected
more » ... sults, corrected for endogeneity and robust to the GSP at the heart of their agenda in multilateral numerous alternative measures of trade policy, suggest negotiations. What effect do such preferences have on a that developing countries may be best served by full recipient's own trade policies? Ozden and Reinhardt integration into the reciprocity-based world trade regime develop and test a simple theoretical model of a small rather than continued GSP-style special preferences.
doi:10.1596/1813-9450-2955 fatcat:kjqhpbkpwnbx3fawciafdzrwgm