A Prima Facie Evidence on the Impact of Export Diversification on Relative Trade Preferential Margin
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Sena Kimm Gnangnon
Abstract
This paper assesses the impact of export diversification in developing countries and particularly Least developed countries (LDCs) on the relative preferential margin that they enjoy in accessing preference-granters’ market. The analysis is carried out in a gravity-type model comprising 19 developed countries and 54 beneficiaries of non-reciprocal trade preferences from these developed countries, over the period 2002–2007. The empirical analysis suggests a non-linear relationship between the degree of export diversification in developing countries and the relative preferential margin that they benefit from developed preference-granting countries. However, it appears that the latter encourage LDCs to diversify their export products by providing them with higher trade preference advantages compared to their competitors in their markets.
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Appendix
A Descriptive statistics
| Variable | Observations | Mean | Standard Deviation | Minimum | Maximum |
|---|---|---|---|---|---|
| RPM | 8062 | 0.001 | 0.016 | –0.264 | 0.171 |
| EDI | 7171 | 0.325 | 0.093 | 0.167 | 0.565 |
| AfTGDP | 3995 | 0.026 | 0.063 | –0.099 | 0.850 |
| GDPCapRe | 7936 | 1.17e+11 | 2.15e+11 | 1.95e+09 | 1.13e+12 |
| Colony | 8062 | 0.053 | 0.223 | 0 | 1 |
| VotingUN | 3156 | 0.798 | 0.093 | .2272727 | 1 |
| RegQual | 8062 | –0.067 | 0.611 | –1.323 | 1.939 |
| MerchTrade | 8062 | 29.58568 | 24.6796 | 4.988583 | 183.9053 |
B Correlation tables.
| RPM | EDI | AfTGDP | GDPCapRe | Colony | VotingUN | RegQual | MerchTrade | |
|---|---|---|---|---|---|---|---|---|
| RPM | 1.0000 | |||||||
| EDI | 0.0903* | 1.0000 | ||||||
| AfTGDP | 0.1607* | –0.1784* | 1.0000 | |||||
| GDPCapRe | –0.1820* | 0.5344* | –0.1842* | 1.0000 | ||||
| Colony | 0.0341* | 0.0166 | 0.1471* | –0.0000 | 1.0000 | |||
| VotingUN | –0.1135* | 0.1541* | 0.0845* | 0.0644* | –0.0015 | 1.0000 | ||
| RegQual | –0.0764* | 0.2082* | –0.1466* | 0.1269* | 0.0033 | 0.1284* | 1.0000 | |
| MerchTrade | –0.0884* | –0.2006* | –0.0621* | –0.0647* | –0.0053 | –0.0217 | 0.5025* | 1.0000 |
C List of Countries Used in the Analysis
List of the 19 donor-countries used in the analysis
Australia, Austria, Canada, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, United Kingdom and United States.
List of the 54 recipient-countries used in the analysis
Algeria, Argentina, Bangladesh, Benin, Bolivia, Brazil, Cameroon, Chile, Colombia, Costa-Rica, Croatia, Ecuador, El Salvador, Ethiopia, Gabon, Ghana, Guatemala, Honduras, India, Indonesia, Israel, Jamaica, Jordan, Kenya, Lebanon, Madagascar, Malawi, Malaysia, Mauritius, Mexico, Morocco, Mozambique, Namibia, Nicaragua, Nigeria, Oman, Pakistan, Paraguay, Peru, Philippines, Saudi Arabia, Senegal, Singapore, Slovenia, South Africa, Sri Lanka, Tanzania, Togo, Trinidad and Tobago, Tunisia, Turkey, Uganda, Uruguay, Zambia.
List of the countries in the sub-sample of Least-developed Countries (LDCs) used in the analysis
Bangladesh, Benin, Ethiopia, Madagascar, Malawi, Mozambique, Senegal, Tanzania, Togo, Uganda, Zambia.
© 2018 Walter de Gruyter GmbH, Berlin/Boston
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Articles in the same Issue
- Firm Heterogeneity, Imported Input Quality, and Export Pricing in India
- Fishing Downstream Revisited: A Multi-country Analysis of Antidumping Patterns
- The Labor Share Squeeze in Latin America: A Dynamic Heterogeneous Approach
- Lead Jurisdiction Concepts: Prospects and Limits for Rationalizing International Competition Policy Enforcement
- A Prima Facie Evidence on the Impact of Export Diversification on Relative Trade Preferential Margin
