Does Regionalism Affect Trade Liberalization toward Nonmembers?

We examine the effect of regionalism on unilateral trade liberalization using industry-level data on applied most-favored nation (MFN) tariffs and bilateral preferences for ten Latin American countries from 1990 to 2001. We find that preferential tariff reduction in a given sector leads to a reducti...

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Bibliographic Details
Main Authors:	Estevadeordal, Antoni, Freund, Caroline, Ornelas, Emanuel
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Trade Policy International Trade Organizations F130 Economic Integration F150 International Linkages to Development Role of International Organizations O190 Development Planning and Policy: Trade Policy Factor Movement Foreign Exchange Policy O240
Online Access:	http://hdl.handle.net/10986/5702

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recordtype	oai_dc
spelling	okr-10986-57022021-04-23T14:02:23Z Does Regionalism Affect Trade Liberalization toward Nonmembers? Estevadeordal, Antoni Freund, Caroline Ornelas, Emanuel Trade Policy International Trade Organizations F130 Economic Integration F150 International Linkages to Development Role of International Organizations O190 Development Planning and Policy: Trade Policy Factor Movement Foreign Exchange Policy O240 We examine the effect of regionalism on unilateral trade liberalization using industry-level data on applied most-favored nation (MFN) tariffs and bilateral preferences for ten Latin American countries from 1990 to 2001. We find that preferential tariff reduction in a given sector leads to a reduction in the external (MFN) tariff in that sector. External liberalization is greater if preferences are granted to important suppliers. However, these "complementarity effects" of preferential liberalization on external liberalization do not arise in customs unions. Overall, our results suggest that concerns about a negative effect of preferential liberalization on external trade liberalization are unfounded. 2012-03-30T07:34:07Z 2012-03-30T07:34:07Z 2008 Journal Article Quarterly Journal of Economics 00335533 http://hdl.handle.net/10986/5702 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Latin America & Caribbean
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Trade Policy International Trade Organizations F130 Economic Integration F150 International Linkages to Development Role of International Organizations O190 Development Planning and Policy: Trade Policy Factor Movement Foreign Exchange Policy O240
spellingShingle	Trade Policy International Trade Organizations F130 Economic Integration F150 International Linkages to Development Role of International Organizations O190 Development Planning and Policy: Trade Policy Factor Movement Foreign Exchange Policy O240 Estevadeordal, Antoni Freund, Caroline Ornelas, Emanuel Does Regionalism Affect Trade Liberalization toward Nonmembers?
geographic_facet	Latin America & Caribbean
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	We examine the effect of regionalism on unilateral trade liberalization using industry-level data on applied most-favored nation (MFN) tariffs and bilateral preferences for ten Latin American countries from 1990 to 2001. We find that preferential tariff reduction in a given sector leads to a reduction in the external (MFN) tariff in that sector. External liberalization is greater if preferences are granted to important suppliers. However, these "complementarity effects" of preferential liberalization on external liberalization do not arise in customs unions. Overall, our results suggest that concerns about a negative effect of preferential liberalization on external trade liberalization are unfounded.
format	Journal Article
author	Estevadeordal, Antoni Freund, Caroline Ornelas, Emanuel
author_facet	Estevadeordal, Antoni Freund, Caroline Ornelas, Emanuel
author_sort	Estevadeordal, Antoni
title	Does Regionalism Affect Trade Liberalization toward Nonmembers?
title_short	Does Regionalism Affect Trade Liberalization toward Nonmembers?
title_full	Does Regionalism Affect Trade Liberalization toward Nonmembers?
title_fullStr	Does Regionalism Affect Trade Liberalization toward Nonmembers?
title_full_unstemmed	Does Regionalism Affect Trade Liberalization toward Nonmembers?
title_sort	does regionalism affect trade liberalization toward nonmembers?
publishDate	2012
url	http://hdl.handle.net/10986/5702
_version_	1764396011847942144

Does Regionalism Affect Trade Liberalization toward Nonmembers?

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