Hoekman, BernardÖzden, Çaglar2012-06-262012-06-262005-04https://hdl.handle.net/10986/9264Nonreciprocal trade preferences and provisions in the GATT/WTO that allow developing countries greater leeway to retain or use protectionist policies are two of the central planks of so-called special and differential treatment (SDT) for developing countries in the multilateral trading system. The authors survey the literature on the rationales, institutional features, and economic effectiveness of SDT. A large literature has emerged on SDT in the past 50 years, by both proponents and opponents. They summarize a number of key contributions on the subject, with a special emphasis on the evaluation of the impact of SDT, especially preferential market access. The issue of SDT has become very topical again, following a period during which it was viewed as an outdated concept for the multilateral trading system. The authors therefore devote attention as well to a number of recent contributions that discuss (1) whether there is a continued need for SDT, and (2) how this might be designed from both a development (recipient) objective and from the perspective of the trading system more generally. A major theme of the survey is that most of the issues that are debated today were already being discussed in the 1960s. The authors conclude that those who questioned the value of unilateral preferences have proven to be prescient.en-USCC BY 3.0 IGOADVERSE EFFECTSAGRICULTURAL PRODUCTSANDEAN TRADE PREFERENCESAPPARELAPPAREL EXPORTSATTENUATED INCENTIVESBILATERAL TRADECARTELCENTRAL AMERICACOMPARATIVE ADVANTAGECONDITIONALITYCONSUMERSCOUNTRY EXPORTERSCOUNTRY MARKETSCUSTOMSDEVELOPED COUNTRIESDISPUTE RESOLUTIONDOMESTIC FIRMSDOMESTIC INDUSTRYDOMESTIC PRODUCERSDUTY-FREE ACCESSDUTY-FREE TREATMENTECONOMIC ANALYSISECONOMIC DEVELOPMENTECONOMIC EFFECTSECONOMIC GROWTHECONOMIC OBJECTIVESECONOMIC ORDERECONOMIES OF SCALEELASTICITIESELASTICITYELASTICITY OF SUBSTITUTIONEMPIRICAL ANALYSISEQUILIBRIUMEXISTING SCHEMESEXPORT EARNINGSEXPORT SECTOREXPORTERSEXPORTSFACTOR MARKETSFINANCIAL RESOURCESFOREIGN EXCHANGEFOREIGN GOODSFOREIGN PRODUCTSFREE ACCESSFREE TRADEFREE TRADE AGREEMENTGATT/WTOGDPGDP PER CAPITAGENERAL EQUILIBRIUM ANALYSISGENERAL SYSTEM OF PREFERENCESGNPGNP PER CAPITAGRAVITY APPROACHGRAVITY MODELGROWTH RATEHIGH TRADE BARRIERSHUMAN RIGHTSHUMAN RIGHTS/ENVIRONMENTALIMPACT OF TRADEIMPORT-COMPETING SECTORSIMPORT-SUBSTITUTION INDUSTRIALIZATIONINCOMEINCOME DEVELOPING COUNTRIESINCOME LEVELSINDUSTRIAL EXPANSIONINDUSTRIAL PRODUCTSINDUSTRIALIZATIONINTELLECTUAL PROPERTYINTELLECTUAL PROPERTY RIGHTSINVESTMENT POLICIESLDCSLEGISLATIONLOCAL INPUTSLOCAL MARKETMARGINAL TRADEMARKET POWERMARKET SHAREMEMBER STATESMFN TARIFFSMONEY LAUNDERINGMULTILATERAL NEGOTIATINGMULTILATERAL TRADEMULTILATERAL TRADE NEGOTIATIONSNONTARIFF BARRIERSPARTIAL EQUILIBRIUM ANALYSISPOLITICAL ECONOMYPREFERENCE EROSIONPREFERENCE SCHEMESPREFERENTIAL ACCESSPREFERENTIAL MARKET ACCESSPREFERENTIAL TARIFFSPREFERENTIAL TRADEPREFERENTIAL TREATMENTPRODUCT CATEGORIESPRODUCT LEVELPROPERTY RIGHTSPROTECTIONISMPROTECTIONIST POLICIESPROTECTIONIST PRESSURESQUOTASRECIPROCAL BASISRECIPROCAL TRADE PREFERENCESRECIPROCITYREGIONAL PROGRAMRESTRICTIVE RULES OF ORIGINRULES OF ORIGINSAFEGUARD CLAUSESPECIALIZATIONTARIFF LINESTARIFF PREFERENCESTARIFF RATETECHNOLOGY TRANSFERTERMS OF TRADETERMS OF TRADE EFFECTSTIME SERIESTRADE AGREEMENTTRADE AGREEMENT PARTNERSTRADE CONCESSIONSTRADE CREATIONTRADE CREATION/DIVERSION--WHICHTRADE DIVERSIONTRADE DIVERSION EFFECTTRADE EXPANSIONTRADE FLOWSTRADE LIBERALIZATIONTRADE LIBERALIZATION EFFORTSTRADE NEGOTIATIONSTRADE POLICIESTRADE POLICYTRADE POLICY INSTRUMENTSTRADE PREFERENCESTRADE PROMOTIONTRADE REGIMETRADE RESTRICTIONSTRADE VOLUMETRADING SYSTEMUNILATERAL PREFERENCE PROGRAMSUNILATERAL PREFERENCESUNILATERAL TRADEUNILATERAL TRADE LIBERALIZATIONURUGUAY ROUNDVALUE ADDEDVALUE OF IMPORTSWELFARE LOSSWELFARE LOSSESWORLD ECONOMYWORLD TRADEWORLD TRADE ORGANIZATIONZERO TARIFFZERO TARIFFSWorld Bank10.1596/1813-9450-3566