Publication:
Trade Preferences to Small Developing Countries and the Welfare Costs of Lost Multilateral Liberalization

Simple item page
creativeworkseries.issn1564-698X
dc.contributor.authorLimão, Nuno
dc.contributor.authorOlarreaga, Marcelo
dc.date.accessioned2013-12-20T20:03:07Z
dc.date.available2013-12-20T20:03:07Z
dc.date.issued2006-05-17
dc.description.abstractThe proliferation of preferential trade liberalization over the last 20 years has raised the question of whether it slows multilateral trade liberalization. Recent theoretical and empirical evidence indicates that this is the case even for unilateral preferences that developed countries provide to small and poor countries, but there is no estimate of the resulting welfare costs. This stumbling block effect can be avoided by replacing the unilateral preferences with a fixed import subsidy, which generates a Pareto improvement. More importantly, this paper presents the first estimates of the welfare cost of preferential liberalization as a stumbling block to multilateral liberalization. Recent estimates of the stumbling block effect of preferences with data for 170 countries and more than 5,000 products are used to calculate the welfare effects of the European Union, Japan, and the United States switching from unilateral preferences for least developed countries to an import subsidy scheme. In a model with no dynamic gains to trade, the switch produces an annual net welfare gain for the 170 countries that adds about 10 percent to the estimated trade liberalization gains in the Doha Round. It also generates gains for each group: the European Union, Japan, and the United States ($2,934 million), least developed countries ($520 million), and the rest of the world ($900 million).en
dc.identifierhttp://documents.worldbank.org/curated/en/2006/05/17753325/trade-preferences-small-developing-countries-welfare-costs-lost-multilateral-liberalization
dc.identifier.citationWorld Bank Economic Review
dc.identifier.doi10.1596/16431
dc.identifier.otherdoi:10.1093/wber/lhj013
dc.identifier.urihttps://hdl.handle.net/10986/16431
dc.languageEnglish
dc.language.isoen_US
dc.publisherOxford University Press on behalf of the World Bank
dc.relation.ispartofseriesWorld Bank Economic Review
dc.rightsCC BY-NC-ND 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/igo
dc.subjectABSOLUTE VALUE
dc.subjectACCORDS
dc.subjectAD VALOREM
dc.subjectADJUSTMENT ASSISTANCE
dc.subjectAGRICULTURAL SECTOR
dc.subjectAGRICULTURE
dc.subjectBALANCE OF PAYMENTS
dc.subjectBENCHMARK
dc.subjectBILATERAL TRADE
dc.subjectCOMPARATIVE ADVANTAGE
dc.subjectCOMPETITIVE POSITION
dc.subjectCONCESSIONS
dc.subjectCONSTANT RETURNS TO SCALE
dc.subjectCUSTOMS
dc.subjectDEMAND ELASTICITIES
dc.subjectDEVELOPED COUNTRIES
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPMENT ASSISTANCE
dc.subjectDIFFERENTIAL TREATMENT
dc.subjectDIRECT TRANSFERS
dc.subjectDOMESTIC PRICE
dc.subjectECONOMIC POLICIES
dc.subjectECONOMIC POLICY
dc.subjectECONOMIC RELATIONS
dc.subjectECONOMIC RESEARCH
dc.subjectELASTICITY
dc.subjectENVIRONMENTAL STANDARDS
dc.subjectEQUILIBRIUM
dc.subjectEUROPEAN UNION
dc.subjectEXPORT MARKETS
dc.subjectEXPORT PRICE
dc.subjectEXPORT REVENUE
dc.subjectEXPORT SPECIALIZATION
dc.subjectEXPORT SUPPLY
dc.subjectEXPORTERS
dc.subjectEXPORTS
dc.subjectEXTERNALITIES
dc.subjectEXTERNALITY
dc.subjectFOREIGN PRODUCER
dc.subjectFREE TRADE
dc.subjectFREE TRADE AGREEMENT
dc.subjectFREE-TRADE AGREEMENTS
dc.subjectFUTURE RESEARCH
dc.subjectGDP
dc.subjectGENERAL AGREEMENT ON TARIFFS
dc.subjectGENERAL EQUILIBRIUM
dc.subjectGENERAL EQUILIBRIUM MODEL
dc.subjectGENERALIZED SYSTEM OF PREFERENCES
dc.subjectGLOBAL ECONOMY
dc.subjectGLOBAL TRADE
dc.subjectGLOBAL TRADING
dc.subjectHUMAN RIGHTS
dc.subjectIMPORT DUTIES
dc.subjectIMPORT TARIFFS
dc.subjectINDUSTRIALIZED COUNTRIES
dc.subjectINEQUALITY
dc.subjectINFANT INDUSTRY
dc.subjectINFANT INDUSTRY ARGUMENT
dc.subjectINTELLECTUAL PROPERTY
dc.subjectINTELLECTUAL PROPERTY PROTECTION
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL ECONOMICS
dc.subjectINTERNATIONAL TRADE
dc.subjectINTERNATIONAL TRADE COMMISSION
dc.subjectINTERNATIONAL TRADE POLICY
dc.subjectLDCS
dc.subjectLEGAL PERSPECTIVE
dc.subjectLESS DEVELOPED COUNTRIES
dc.subjectMARKET ACCESS
dc.subjectMARKET INTEGRATION
dc.subjectMOST FAVORED NATION
dc.subjectMULTILATERAL LIBERALIZATION
dc.subjectMULTILATERAL TARIFFS
dc.subjectMULTILATERAL TRADE
dc.subjectMULTILATERAL TRADE LIBERALIZATION
dc.subjectNATIONAL BUREAU
dc.subjectNET EXPORTS
dc.subjectPERFECT COMPETITION
dc.subjectPOLICY RESEARCH
dc.subjectPOLITICAL ECONOMY
dc.subjectPREFERENTIAL ACCESS
dc.subjectPREFERENTIAL AGREEMENT
dc.subjectPREFERENTIAL AGREEMENTS
dc.subjectPREFERENTIAL MARGIN
dc.subjectPREFERENTIAL MARGINS
dc.subjectPREFERENTIAL TARIFF
dc.subjectPREFERENTIAL TARIFFS
dc.subjectPREFERENTIAL TRADE
dc.subjectPREFERENTIAL TRADE AGREEMENT
dc.subjectPREFERENTIAL TRADE AGREEMENTS
dc.subjectPREFERENTIAL TRADE ARRANGEMENTS
dc.subjectPREFERENTIAL TRADE LIBERALIZATION
dc.subjectPREFERENTIAL TREATMENT
dc.subjectPREFERENTIAL ~ TRADE
dc.subjectPREFERENTIAL ~ TRADE AGREEMENTS
dc.subjectPRICE EFFECTS
dc.subjectPRICE SUPPORT
dc.subjectRECIPROCITY
dc.subjectREGIONAL INTEGRATION
dc.subjectREGIONALISM
dc.subjectRULES OF ORIGIN
dc.subjectSPECIALIZATION
dc.subjectTARIFF CHANGES
dc.subjectTARIFF DATA
dc.subjectTARIFF LINE
dc.subjectTARIFF PREFERENCE
dc.subjectTARIFF PREFERENCES
dc.subjectTARIFF RATE
dc.subjectTARIFF REDUCTION
dc.subjectTARIFF REDUCTIONS
dc.subjectTARIFF REVENUE
dc.subjectTAX RATE
dc.subjectTERMS OF TRADE
dc.subjectTERMS OF TRADE EFFECTS
dc.subjectTRADE BARRIERS
dc.subjectTRADE DISTORTIONS
dc.subjectTRADE EFFECT
dc.subjectTRADE FLOWS
dc.subjectTRADE INTEGRATION
dc.subjectTRADE MODEL
dc.subjectTRADE NEGOTIATORS
dc.subjectTRADE OBJECTIVES
dc.subjectTRADE PREFERENCE
dc.subjectTRADE PREFERENCES
dc.subjectTRADE REFORM
dc.subjectTRADING PARTNERS
dc.subjectTRANSPORT COSTS
dc.subjectUNILATERAL PREFERENCES
dc.subjectUNILATERAL TRADE
dc.subjectURUGUAY ROUND
dc.subjectVALUE OF IMPORTS
dc.subjectWELFARE GAINS
dc.subjectWORKER RIGHTS
dc.subjectWORLD MARKET
dc.subjectWORLD MARKETS
dc.subjectWORLD PRICE
dc.subjectWORLD PRICES
dc.subjectWORLD TRADE
dc.subjectWORLD TRADE ORGANIZATION
dc.subjectWORLD TRADING SYSTEM
dc.subjectWTO
dc.titleTrade Preferences to Small Developing Countries and the Welfare Costs of Lost Multilateral Liberalizationen
dc.typeJournal Articleen
dc.typeArticle de journalfr
dc.typeArtículo de revistaes
dspace.entity.typePublication
okr.date.disclosure2013-05-24
okr.date.doiregistration2025-05-06T10:58:59.301864Z
okr.doctypePublications & Research::Journal Article
okr.doctypePublications & Research::Journal Article
okr.docurlhttp://documents.worldbank.org/curated/en/2006/05/17753325/trade-preferences-small-developing-countries-welfare-costs-lost-multilateral-liberalization
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeGovernance
okr.globalpracticeTrade and Competitiveness
okr.globalpracticeTrade and Competitiveness
okr.guid547201468152378300
okr.identifier.doi10.1093/wber/lhj013
okr.identifier.externaldocumentum000333037_20130524150826
okr.identifier.internaldocumentum17753325
okr.identifier.report77521
okr.journal.nbpages217-240
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/05/24/000333037_20130524150826/Rendered/PDF/775210JRN020060C00Trade0Preferences.pdfen
okr.peerreviewAcademic Peer Review
okr.relation.associatedurlhttps://openknowledge.worldbank.org/handle/10986/9022
okr.topicLaw and Development::Trade Law
okr.topicInternational Economics and Trade::International Trade and Trade Rules
okr.topicInternational Economics and Trade::Free Trade
okr.topicInternational Economics and Trade::Trade Policy
okr.topicEconomic Theory and Research
okr.topicMacroeconomics and Economic Growth
okr.unitTransport (LCSTR)
okr.volume20(2)
relation.isJournalIssueOfPublication1ddc0efd-29fc-4d20-b3e1-be41c0a83b25
relation.isJournalIssueOfPublication.latestForDiscovery1ddc0efd-29fc-4d20-b3e1-be41c0a83b25
relation.isJournalOfPublicationc41eae2f-cf94-449d-86b7-f062aebe893f
relation.isJournalVolumeOfPublication91b3ab49-f93d-44b6-83b1-d6ca04c3bbcc
Files
Original bundle
Now showing 1 - 2 of 2
No Thumbnail Available
Name:
775210JRN020060C00Trade0Preferences.txt
Size:
88.33 KB
Format:
Plain Text
Download
Thumbnail Image
Name:
775210JRN020060C00Trade0Preferences.pdf
Size:
155.58 KB
Format:
Adobe Portable Document Format
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description:
Download
Collections
Journal Articles