Trade Preferences for Developing Countries
Analyses the effects of non‐reciprocal tariff preferences granted by high‐income countries to less‐developed countries. Section 1 reports the gross trade effects, which have often been small because of low export supply elasticities of the beneficiaries and exclusion of products for which supply might have been responsive. Section 2 deals with measures of trade creation, trade diversion, and the net welfare effects. Section 3 draws conclusions.
Keywords: less‐developed countries, supply elasticity, tariff preferences, trade creation, trade diversion, welfare
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