Non‐Reciprocal Trade Preferences and the Role of Compliance Costs in the Agricultural Sector: Exports to the EU

Agostino, Mariarosaria; Demaria, Federica; Trivieri, Francesco

doi:10.1111/j.1477-9552.2010.00264.x

Cited by 18 publications

(18 citation statements)

References 28 publications

(56 reference statements)

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“…Similarly, Manchin (2006) finds that the preferential margin does not affect the amount of preferential trade, once the decision to request preferences has been taken. Building on this approach, Agostino et al (2010) confirm this result using the residuals from the stage one utilization equation as a proxy for compliance costs in the stage two gravity equation.…”

Section: Literature Reviewsupporting

confidence: 60%

“…in this case, the fact that GSP preferences would be claimed more often in the 7 More precisely, the authors show that while the effect of the preference margin is positive, the interaction term with the cost of compliance residual is negative, which indicates a vanishing effect of the margin, when compliance costs increase. A key difference to other papers, Agostino et al (2010) define the margin as a relative margin: m = (MFN -PREF) / MFN. In our view, using the absolute difference is preferable.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Manchin (2006), for example, given the political discussions surrounding Economic Partnership Agreements (EPAs), has focused on preferential access of non-LDC ACP countries to the EU. Others are interested in specific sectors, such as Agostino et al (2010), Bureau et al (2007) or OECD (2005), who examine agricultural/food products. Conducting their analysis at the HS-6 level, several studies, such as Agostino et al (2010), also use a relatively high product aggregation.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Others are interested in specific sectors, such as Agostino et al (2010), Bureau et al (2007) or OECD (2005), who examine agricultural/food products. Conducting their analysis at the HS-6 level, several studies, such as Agostino et al (2010), also use a relatively high product aggregation. By increasing the country and product scope we aim at deriving more general conclusions about the utilization of preferences and the factors driving it.…”

Section: Literature Reviewmentioning

confidence: 99%

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New Evidence on Preference Utilization

Keck¹,

Lendle²

2012

WTO Working Papers

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We analyse the degree of preference utilization in four major importing countries (Australia, Canada, EU and US) and provide evidence that preferences are more widely used than previously thought. For Australia and Canada, we have obtained a new dataset on imports by preferential regime that has so far not been publicly available. For the EU and US, we make use of more disaggregated data than previously used in the literature. We empirically test what determines utilization rates. In line with previous studies, we find that utilization increases with both the preferential margin and the volume of exports, suggesting that using preferences can be costly. However, we also find that utilization rates are often very high, even for very small preferential margins and/or very small trade flows, which contradicts numerous estimates that average compliance costs are as high as 2-6%. We extend the existing literature in relation to both data and methodological issues. In particular, we construct "pseudo transaction-level" data that allows us to assess more precisely when available preferences are utilized. Using this methodology, we obtain a more realistic estimate of what determines utilization. Rather than constituting a percentage share of the trade value, our findings indicate that utilization costs involve an important fixed cost element. We provide estimates for such fixed costs, which appear to be in the range of USD 14 to USD 1,500.

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Section: Literature Reviewsupporting

confidence: 60%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

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New Evidence on Preference Utilization

Keck¹,

Lendle²

2012

WTO Working Papers

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“…The index is produced by the Swiss Federal Institute of Technology in Switzerland. This index is widely employed as a proxy variable of the risk in this field (Agostino et al 2010). It is regarded that the risk of the importing country is negatively related to exports.…”

Section: Data and Variable Definitionsmentioning

confidence: 99%

What Explains German Export Performances? Spatial Econometric Evidences: 1995 to 2014

Yang¹,

Liu²,

Mai³

2017

IBR

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German exports achieved outstanding performances, yet there is lack of research utilizing spatial econometric evidences. This paper explores four explanations and evaluates their empirical contributions: (i) German exports were highly correlated to its imports. Thus, its exports built upon bilateral trade flows. (ii) German exported to countries with high GDP per capita with the capability and the demand of high-quality and less price-elastic goods. (iii) It exported to countries with economic integration with other countries such as free trade agreements. (iv) Its exports broadened from Europe to other countries in America and the Asia Pacific regio n with increasing total export-volume growth. Thus, German exports benefited from the free trade flow to a few EU member countries, those are close geographically and culturally to Germany. The empirical evidence also points out that the changing geospatial distribution of German exports is another key factors to its export success. The spatial Durbin model was identified to be the best fit model of all after a series of tests. Decisive determinants of its exports performance were found through the estimation besides geospatial analyses of its exports by employing Moran's I.Keywords: spatial econometrics, spatial effects, German exports distribution, exports determinants IntroductionGerman exports have long been well documented, and their performances and competitiveness widely studied. However, there is a significant lack of research on how Germany achieved outstanding export performances using spatial econometric evidences. This paper aims to fill the gap in the existing literature by investigating the changing geospatial distribution of its exports and identifying determinants to its outstanding performances over decades by applying spatial econometric models.We first employ Moran's I which is a useful indicator of the spatial association. The statistic of Moran's I can illustrate and show the decomposition of the association into spatial clusters (it is the "country" in the case of this study) and, therefore, it is more effectively observe and assess changing geospatial distribution of German exports during the period of this study.Then we examined the explanatory power of the spatial lag model (SLM) or the spatial error model (SEM), it is much better off than the conventional Pooled Ordinary Least Squares (OLS) by comparing the R-squared of each. The log-likelihood test, the LR test, and the robust LR test were employed to determine if the SLM is more favored than the SEM for the panel data of this study. The Hausman test was also utilized to decide that the fixed effects model is more appropriate than the random effects model. Wald test was used to determine that the spatial Durbin model (SDM) is more favored than the SLM.The SDM was finally identified to be the best fit model of all after the series of aforementioned tests. Decisive factors of German exports performances were found through this study besides geospatial analyses of the exports by emplo...

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European Union Preferential Trading Arrangements: Evolution, Content and Use

Nilsson

2011

The Trade Impact of European Union Preferential Policies

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Non‐Reciprocal Trade Preferences and the Role of Compliance Costs in the Agricultural Sector: Exports to the EU

Cited by 18 publications

References 28 publications

New Evidence on Preference Utilization

New Evidence on Preference Utilization

What Explains German Export Performances? Spatial Econometric Evidences: 1995 to 2014

European Union Preferential Trading Arrangements: Evolution, Content and Use

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