“…Third, even when eligibility is not a problem, complex rules of origin requirements inhibit full use of the preference by developing country exporters with limited technical capacity (UNCTAD, 1999). Not surprisingly, the conclusion of numerous empirical studies is that GSP has underperformed, yielding at best a bmodestQ increase in imports from beneficiary states, with some of those gains due merely to trade diversion (MacPhee and Oguledo, 1991;Brown, 1989;Sapir and Lundberg, 1984;Whalley, 1990). …”