Abstract

http://ssrn.com/abstract=1095623
 
 

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Preference Erosion and Multilateral Trade Liberalization


Joseph F. Francois


Johannes Kepler University Linz; Centre for Economic Policy Research (CEPR); Vienna Institute of International Economic Studies (WIIW); University of Adelaide - School of Economics

Bernard Hoekman


Robert Schuman Centre for Advanced Studies; European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS); Centre for Economic Policy Research (CEPR)

Miriam Manchin


University College London; Centro Studi Luca d'Agliano

2006

The World Bank Economic Review, Vol. 20, Issue 2, pp. 197-216, 2006

Abstract:     
Because of concern that tariff reductions in Organisation for Economic Co-operation and Development (oecd) countries will translate into worsening export performance for the least developed countries, the erosion of trade preferences may become a stumbling block for multilateral trade liberalization. An econometric analysis of actual preference use shows that preferences are underused because of administrative burdens-estimated to be equivalent to an average of 4 percent of the value of goods traded. To quantify the maximum scope for preference erosion, the compliance cost estimates are used in a model-based assessment of the impact of full elimination of oecd tariffs. Taking into account administrative costs eliminates erosion costs in the aggregate and greatly reduces the losses for countries most affected by preference erosion.

Accepted Paper Series


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Date posted: February 29, 2008  

Suggested Citation

Francois, Joseph F. and Hoekman, Bernard and Manchin, Miriam, Preference Erosion and Multilateral Trade Liberalization ( 2006). The World Bank Economic Review, Vol. 20, Issue 2, pp. 197-216, 2006. Available at SSRN: http://ssrn.com/abstract=1095623 or http://dx.doi.org/10.1093/wber/lhj010

Contact Information

Joseph F. Francois (Contact Author)
Johannes Kepler University Linz ( email )
Altenbergerstrasse 69
A-4040 Linz, 4040
Austria
HOME PAGE: http://www.i4ide.org/francois/
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
Vienna Institute of International Economic Studies (WIIW) ( email )
Oppolzergasse 6
A-1010 Vienna
Austria
University of Adelaide - School of Economics ( email )
Adelaide SA, 5005
Australia
+61 8 8303 5540 (Phone)
+61 8 8223 1460 (Fax)
Bernard Hoekman
Robert Schuman Centre for Advanced Studies ( email )
Fiesole, Tuscany
Italy
European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS) ( email )
Via dei Roccettini 9
via delle Fontanelle 10
50016 San Domenico di Fiesole, Florence 50014
Italy
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
Miriam Manchin
University College London ( email )
Gower Street
London, WC1E 6BT
United Kingdom
Centro Studi Luca d'Agliano ( email )
Via Conservatorio 7
Milan, 20122
Italy
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