Abstract
This chapter assesses the impact on trade of European Union (EU) trade policies, using a gravity model based on disaggregated trade flows from 169 Developing Countries (DC) to 25 EU member countries. It uses a sample selection framework to account for potential selection bias in positive trade flows and provides an explicit measure for relative preference margins. The results serve to debunk some of the most widespread criticisms of preferential policies: EU preferences matter, and have a positive impact on developing countries’ exports at the intensive margin, and an ambiguous impact at the extensive margin with significant differences across sectors.
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Acknowledgments
We acknowledge financial support from the “New Issues in Agricultural, Food and Bio-energy Trade (AGFOODTRADE)” (Small and Medium-scale Focused Research Project, Grant Agreement no. 212036) research project funded by the European Commission, and the “European Union policies, economic and trade integration processes and WTO negotiations” research project funded by the Italian Ministry of Education, University and Research (Scientific Research Programs of National Relevance 2007). We are grateful to Luca De Benedictis and David Laborde for the comments and the many conversations on the topic. Any remaining errors are solely our responsibility and the views expressed in this paper are those of the authors and do not necessarily reflect those of the European Commission. The views expressed in this paper are the sole responsibility of the authors and do not necessarily reflect those of the European Commission.
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Cipollina, M., Salvatici, L. (2011). Trade Impact of European Union Preferences. In: De Benedictis, L., Salvatici, L. (eds) The Trade Impact of European Union Preferential Policies. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-16564-1_6
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DOI: https://doi.org/10.1007/978-3-642-16564-1_6
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