Author : Caglar Ozden
Publisher :
ISBN 13 :
Total Pages : 33 pages
Book Rating : 4.:/5 (16 download)
Book Synopsis The Perversity of Preferences by : Caglar Ozden
Download or read book The Perversity of Preferences written by Caglar Ozden and published by . This book was released on 2003 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: Industrial countries maintain special tariff preferences, namely the Generalized System of Preferences (GSP), for imports from developing countries. Critics have highlighted the underachieving nature of such preferences, but developing countries continue to place the GSP at the heart of their agenda in multilateral negotiations. What effect do such preferences have on a recipient's own trade policies? Özden and Reinhardt develop and test a simple theoretical model of a small country's trade policy choice, using a dataset of 154 developing countries from 1976 through 2000. They find that countries removed from the GSP adopt more liberal trade policies than those remaining eligible. The results, corrected for endogeneity and robust to numerous alternative measures of trade policy, suggest that developing countries may be best served by full integration into the reciprocity-based world trade regime rather than continued GSP-style special preferences. This paper--a product of Trade, Development Research Group--is part of a larger effort in the group to study global trade regimes.