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A note on estimating the static effects of the GSP

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It is apparent that two adjustments to the BM methodology are warranted. Firstly, explicit attention to the change in consumption in the donor country, (dC), mustbe given. Secondly, the value of imports as well as donor production must be in purchasers prices rather than fob values. Finally, when consideration is given to both biases, TC continues to be much larger than TD, a conclusion that BM had also drawn.

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References

  • Baldwin, Robert, Tracy Murray, “MFN Tariff Reductions and Developing Country Trade Benefits Under the GSP”.The Economic Journal, Vol. 87, 1977, pp. 30–46.

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  • Lipsey, Richard, “The Theory of Customs Unions — A General Survey”.The Economic Journal, Vol. 70, 1960, pp. 496–513.

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  1. Dennis G. Beckmann
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Beckmann, D.G. A note on estimating the static effects of the GSP. Weltwirtschaftliches Archiv 124, 566–569 (1988). https://doi.org/10.1007/BF02708666

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