The Generalized System of Preferences of the United States: Does it Promote Industrialization and Economic Growth of the Least Developed Countries?

Posted: 12 Jun 2008 Last revised: 24 Jul 2008

See all articles by Caf Dowlah

Caf Dowlah

City University of New York

Abstract

The Generalized System of Preferences (GSP) - a system of differential and favorable trade arrangements toward less developed countries - has been around since the early 1970s. A primary objective of GSP schemes, sponsored by developed industrialized countries, especially by the United States and the European Union, has been to promote industrialization and economic growth in developing countries through trade rather than aid. The outcome of such programs have, however, been mixed. This paper identifies some of the underlying political and economic dynamics which led to abysmal failure of the US GSP schemes, especially in respect to the Least Developed Countries (LDCs). The paper suggests that GSP schemes would be more effective if they are brought under the binding WTO rules, the supply constraints of the LDCs are addressed more resourcefully, and developed countries grant more dependable market access to LDC exports.

Keywords: Generalized System of Preferences, Least Developed Countries, Trade Preferences, World Trade Organization, Economic Integration

JEL Classification: F02, F10, F13, F14, F15

Suggested Citation

Dowlah, Caf, The Generalized System of Preferences of the United States: Does it Promote Industrialization and Economic Growth of the Least Developed Countries?. SIEL Inaugural Conference Paper, Graduate Institute of International Studies Paper. Available at SSRN: https://ssrn.com/abstract=1140717

Caf Dowlah (Contact Author)

City University of New York ( email )

695 Park Avenue
New York, NY 10021
United States

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