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Does regionalism affect trade liberalization towards non-members?

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

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Identification Number: 868


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:
Additional Information: © 2008 the authors
Subjects: H Social Sciences > HF Commerce
Sets: Research centres and groups > Managerial Economics and Strategy Group
Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 17 Jul 2008 11:48
Last Modified: 06 Jun 2012 17:54

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