Details
| Original language | English |
|---|---|
| Pages (from-to) | 2977-3000 |
| Number of pages | 24 |
| Journal | World Economy |
| Volume | 45 |
| Issue number | 9 |
| Early online date | 15 Mar 2022 |
| Publication status | Published - 2 Sept 2022 |
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.
Keywords
- Belarus, generalized system of preferences, GSP, preference withdrawal
ASJC Scopus subject areas
- Business, Management and Accounting(all)
- Accounting
- Economics, Econometrics and Finance(all)
- Finance
- Economics, Econometrics and Finance(all)
- Economics and Econometrics
- Social Sciences(all)
- Political Science and International Relations
Sustainable Development Goals
Cite this
- Standard
- Harvard
- Apa
- Vancouver
- BibTeX
- RIS
In: World Economy, Vol. 45, No. 9, 02.09.2022, p. 2977-3000.
Research output: Contribution to journal › Article › Research › peer review
}
TY - JOUR
T1 - The impact of trade preferences removal
T2 - Evidence from the Belarus Generalized System of Preferences withdrawal
AU - Gnutzmann, Hinnerk
AU - Gnutzmann-Mkrtchyan, Arevik
N1 - Funding Information: The authors thank Kateryna Bornukova and two anonymous referees for their helpful comments. Financial support from the Belarusian Economic Research and Outreach Center (BEROC), German Science Foundation as well as the European Union's Horizon 2020 research and innovation programme under grant agreement No 770680 is gratefully acknowledged. Open Access funding enabled and organized by Projekt DEAL.
PY - 2022/9/2
Y1 - 2022/9/2
N2 - 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.
AB - 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.
KW - Belarus
KW - generalized system of preferences
KW - GSP
KW - preference withdrawal
UR - http://www.scopus.com/inward/record.url?scp=85127237286&partnerID=8YFLogxK
U2 - 10.1111/twec.13265
DO - 10.1111/twec.13265
M3 - Article
AN - SCOPUS:85127237286
VL - 45
SP - 2977
EP - 3000
JO - World Economy
JF - World Economy
SN - 0378-5920
IS - 9
ER -