HCBE Faculty Articles

Title

US Trade Preferences and Export Performance of Developing Countries: Evidence from the Generalized System of Preferences

Document Type

Article

Date

2-2006

Publication Title

International Business Review

ISSN or ISBN

1873-6149

Volume

15

Issue

1

First Page

68

Last Page

83

Description

Preferential market access such as the generalized system of preferences (GSP) is clearly recognized as a way of enabling developing countries export their way out of poverty. It has been a vital feature of industrialized countries' commercial policy for nearly 30 years. This study empirically explores the linkages between US trade preferences under the GSP and beneficiary country exports. Using a large US import database covering over 120 developing countries, the study examines the extent to which GSP influences export performance. The results largely indicate that the GSP has a significant and positive effect on beneficiary exports to US for all country and product groups. A proper understanding of this relationship will help donors and recipients devise appropriate policies to help encourage the growth and diversification of exports that is so vital for developing countries.

DOI

10.1016/j.ibusrev.2005.12.004

Peer Reviewed

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