The impact of trade preferences removal

Evidence from the Belarus Generalized System of Preferences withdrawal

verfasst von

Hinnerk Gnutzmann, Arevik Gnutzmann-Mkrtchyan

Abstract

Under the Generalized System of Preferences (GSP), high-income countries grant unilateral trade preferences to developing countries. These preferences are subject to political conditionality, but little is known about the trade impact of loss of preferential access. We study the EU's complete withdrawal of GSP preferences from Belarus in 2007 in response to labour rights violations to fill this void. The withdrawal caused a significant drop in trade for affected products (25%–27% trade decline) and some trade reduction at the extensive margin. For products where trade was affected at the intensive margin, there is some evidence of adjustment through falls in quantities but also through prices for larger export sectors. The impact was uneven across sectors, with textiles and plastics particularly strongly affected by the withdrawal.

Organisationseinheit(en)

Institut für Makroökonomik

Externe Organisation(en)

Münchener Gesellschaft zur Förderung der Wirtschaftswissenschaft - CESifo GmbH
Belarusian Economic Research and Outreach Center (BEROC)

Typ

Artikel

Journal

World Economy

Band

45

Seiten

2977-3000

Anzahl der Seiten

24

ISSN

0378-5920

Publikationsdatum

02.09.2022

Publikationsstatus

Veröffentlicht

Peer-reviewed

Ja

ASJC Scopus Sachgebiete

Bilanzierung, Finanzwesen, Volkswirtschaftslehre und Ökonometrie, Politikwissenschaften und internationale Beziehungen

Ziele für nachhaltige Entwicklung

SDG 8 – Anständige Arbeitsbedingungen und wirtschaftliches Wachstum

Elektronische Version(en)

https://doi.org/10.1111/twec.13265 (Zugang: Offen)