Why Developing Countries Have Failed to Increase Their Exports of Agricultural Processed Products

17 Pages Posted: 7 Feb 2013

Date Written: February 2013

Abstract

The article uses the case study of coffee, tea and cocoa to analyse whether tariff escalation constitutes a barrier to market access that thwarts diversification efforts of developing countries into exports of value‐added agricultural processed products. It also examines the extent to which non‐tariff barriers act as market access barriers that constrain developing countries from developing their exports of agricultural processed products. Our analysis shows that tariff escalation is not the main barrier; rather it is the prevalence of non‐tariff barriers (including domestic non‐tariff barriers) that limits the ability of developing countries to increase their agricultural processed exports. This has important policy implications in terms of the emphasis that trade negotiators and policy planners should place on addressing non‐tariff barriers.

Keywords: agricultural processed products, cocoa, coffee, developing countries, non‐tariff barriers, tariff escalation, tea, tropical beverages, value addition

JEL Classification: F01, F10, F13, Q17, Q18

Suggested Citation

Khorana, Sangeeta and Choudhury, Homagni, Why Developing Countries Have Failed to Increase Their Exports of Agricultural Processed Products (February 2013). Economic Affairs, Vol. 33, Issue 1, pp. 48-64, 2013, Available at SSRN: https://ssrn.com/abstract=2213121 or http://dx.doi.org/10.1111/ecaf.12000

Sangeeta Khorana (Contact Author)

Bournemouth University ( email )

The Business School
Bournemouth University, Dorset BH8 8ER
United Kingdom

Homagni Choudhury

University of Dundee ( email )

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