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A New Measure of Tariff Preference Margins Adjusted for Import and Domestic Competition

Publication Clermont-Ferrand: Fondation pour les Études et Recherches sur le Développement International, 2011
Collection FERDI, Working Paper; WP 19.2011
Description 33 p.
Abstract This paper provides a new theoretically-derived measure of preference margins at the product level, that takes into account competition across exporters as well as competition with domestic producers on a given market. This indicator is derived for differentiated goods under imperfect competition, in a frame-work extended from Ottaviano, Tabuchi and Thisse (2002). We compute our theoretically-based preference margin measure for the European Union market access over 5,000 products (HS-6 digits) exported by an exhaustive sample of 222 countries in 2008. This new measure reveals very low preference margins once adjusted for domestic and import competition. We also provide econometric correlations validating the relevance of both our “preferred” preference margin indicator and the theoretical framework used to derive it.
Keywords Erosion of preference marginsDeveloping countriesEuropean Union Trade PolicyRegional Trade Agreements
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CARRERE, Céline. A New Measure of Tariff Preference Margins Adjusted for Import and Domestic Competition. 2011 https://archive-ouverte.unige.ch/unige:46752

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Deposited on : 2015-02-17

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