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Does Regionalism Affect Trade Liberalization Toward Non-Members?

Does Regionalism Affect Trade Liberalization Toward Non-Members? This paper examines the effect of regionalism on External liberalization is greater if preferences are granted unilateral trade liberalization using industry-level data to important suppliers. However, these “complementarity on applied most-favored nation tariffs and bilateral effects” of preferential liberalization on external preferences for ten Latin American countries from liberalization do not arise in customs unions. Overall, the 1990 to 2001. The findings show that preferential results suggest that concerns about a negative effect of tariff reduction in a given sector leads to a reduction in preferential liberalization on external trade liberalization the external (most-favored nation) tariff in that sector. are unfounded. This paper—a product of the Trade Team, Development Research Group—is part of a larger effort in the department to understand the consequences of regionalism. Policy Research Working Papers are also posted on the Web at http://econ. worldbank.org. The author may be contacted at cfreund@worldbank.org. The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent. Produced by the Research Support Team http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Policy Research Working Papers Unpaywall

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DOI
10.1596/1813-9450-4751
Publisher site
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Abstract

This paper examines the effect of regionalism on External liberalization is greater if preferences are granted unilateral trade liberalization using industry-level data to important suppliers. However, these “complementarity on applied most-favored nation tariffs and bilateral effects” of preferential liberalization on external preferences for ten Latin American countries from liberalization do not arise in customs unions. Overall, the 1990 to 2001. The findings show that preferential results suggest that concerns about a negative effect of tariff reduction in a given sector leads to a reduction in preferential liberalization on external trade liberalization the external (most-favored nation) tariff in that sector. are unfounded. This paper—a product of the Trade Team, Development Research Group—is part of a larger effort in the department to understand the consequences of regionalism. Policy Research Working Papers are also posted on the Web at http://econ. worldbank.org. The author may be contacted at cfreund@worldbank.org. The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent. Produced by the Research Support Team

Published: Nov 13, 2008

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