The Not-So-Generalized Effects of the Generalized System of Preferences

41 Pages Posted: 2 Oct 2018

See all articles by Emanuel Ornelas

Emanuel Ornelas

Sao Paulo School of Economics

Marcos Ritel

Getulio Vargas Foundation (FGV) - Sao Paulo School of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: September 2018

Abstract

We use an empirical gravity equation approach to study how nonreciprocal trade preferences (NRTPs), enacted mainly through the Generalized System of Preferences, affect the exports of the beneficiary nations. In line with existing studies, the average trade effect stemming from nonreciprocal preferences is highly unstable across specifications. However, once we allow for heterogeneous effects, results become robust and economically important. Specifically, NRTPs have a strong effect on the exports of beneficiaries when they are members of the World Trade Organization and are very poor. Not-so-poor beneficiaries also expand foreign sales, but only if they are not WTO members. For all others, the average export effects of NRTPs are mute.

Keywords: Gravity Equation, GSP, nonreciprocity, trade policy, trade preferences

JEL Classification: F13, F14, F15, F55, F63, O19, O24

Suggested Citation

Ornelas, Emanuel and Ritel, Marcos, The Not-So-Generalized Effects of the Generalized System of Preferences (September 2018). CEPR Discussion Paper No. DP13208, Available at SSRN: https://ssrn.com/abstract=3259370

Emanuel Ornelas (Contact Author)

Sao Paulo School of Economics ( email )

Rua Itapeva 474 s.1202
São Paulo, São Paulo 01332-000
Brazil

HOME PAGE: http://https://sites.google.com/site/emanuelornelaseo/

Marcos Ritel

Getulio Vargas Foundation (FGV) - Sao Paulo School of Economics ( email )

Rua Itapeva 474 s.1202
São Paulo, São Paulo 01332-000
Brazil

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
0
Abstract Views
209
PlumX Metrics