Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/77408 
Year of Publication: 
2007
Series/Report no.: 
HEI Working Paper No. 17/2007
Publisher: 
Graduate Institute of International Studies, Geneva
Abstract: 
We analyze the impact of the EU unilateral trade preferences on both the intensive and the extensive margin of trade. Using a tobit and probit estimation we find that the impact of unilateral trade preferences on both margins is strictly linked to the sector under analysis and to the type of preferences a country benefits from. In particular, we find an anti-diversification effect along with a concentration of exports in agricultural products in the case of more stable preferential schemes, as represented by the African Caribbean and Pacific trade preferences. We also confirm that the Generalized System of Preferences (GSP) for least developing countries did not change the beneficiaries' export pattern, while the traditional GSP and the regime to combat drug production tend to promote diversification of exports.
Subjects: 
Extensive margin
Melitz model
Generalized System of Preference
JEL: 
F12
F13
O19
Document Type: 
Working Paper

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