Does regionalism affect trade liberalization towards non-members?

Estevadeordal, Antoni, Freund, Caroline and Ornelas, Emanuel ORCID: 0000-0001-8330-8745 (2008) Does regionalism affect trade liberalization towards non-members? CEPDP (868). London School of Economics and Political Science. Centre for Economic Performance, London, UK. ISBN 9780853282648

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Abstract

We examine the effect of regionalism on unilateral trade liberalization using industry-level data on applied MFN tariffs and bilateral preferences for ten Latin American countries from 1990 to 2001. We find that preferential tariff reduction in a given sector leads to a reduction in the external (MFN) tariff in that sector. External liberalization is greater if preferences are granted to important suppliers. However, these “complementarity effects” of preferential liberalization on external liberalization do not arise in customs unions. Overall, our results suggest that concerns about a negative effect of preferential liberalization on external trade liberalization are unfounded.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://cep.lse.ac.uk
Additional Information:	© 2008 the authors
Divisions:	Centre for Economic Performance
Subjects:	H Social Sciences > HF Commerce
JEL classification:	F - International Economics > F1 - Trade > F15 - Economic Integration F - International Economics > F1 - Trade > F13 - Commercial Policy; Protection; Promotion; Trade Negotiations; International Trade Organizations
Date Deposited:	17 Jul 2008 11:48
Last Modified:	13 Sep 2024 20:06
URI:	http://eprints.lse.ac.uk/id/eprint/19584

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