The Role of Importers and Exporters in the Determination of the U.S. Tariff Preferences Granted to Latin America

This paper investigates the role played by domestic importers and foreign exporters in improving preferential access to the domestic market. To this end, the framework used in this paper extends the protection for sale analysis to explicitly model the role of domestic importers and foreign exporters...

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Main Author:	Silva, Peri
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	AGRICULTURAL GOODS AGRICULTURE APPAREL PRODUCTS CHAMBERS OF COMMERCE CONSTANT RETURNS TO SCALE CONSUMER SURPLUS CONSUMERS CUSTOMS DOMESTIC MARKET DOMESTIC PRICES DOMESTIC PRODUCERS ECONOMIC ANALYSIS ECONOMIC EFFECTS ELASTICITIES ELASTICITY EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EQUILIBRIUM EQUILIBRIUM PRICES EQUILIBRIUM TARIFF EXPORTERS EXPORTING COUNTRIES EXPORTS FOREIGN EXPORTERS FOREIGN PRODUCERS FORMAL ANALYSIS FREE TRADE FREE TRADE AREA IMPORT PENETRATION IMPORTED GOODS IMPORTING COUNTRY IMPORTS INCOME INCOME DISTRIBUTION INSURANCE INTERNATIONAL TRADE LABOR COSTS LATIN AMERICAN MARKET ACCESS MARKET POWER MULTIPLIERS POLICY INSTRUMENT POLITICAL DISCUSSIONS POLITICAL ECONOMY POSITIVE EXTERNALITIES PREFERENTIAL ACCESS PREFERENTIAL TARIFF PREFERENTIAL TARIFFS PREFERENTIAL TRADE PREFERENTIAL TREATMENT PRODUCERS PRODUCTION PROCESS PROFIT FUNCTIONS QUOTA RENTS SUBSTITUTION EFFECT TARIFF PREFERENCE TARIFF PREFERENCES TARIFF REVENUE TARIFF REVENUES TRADE DIVERSION TRADE LIBERALIZATION TRADE POLICIES TRADE POLICY TRADE PREFERENCES TRADE REGULATIONS TRADE RESTRICTIONS UTILITY FUNCTION WELFARE FUNCTION
Online Access:	http://documents.worldbank.org/curated/en/2005/02/5642278/role-importers-exporters-determination-tariff-preferenes-granted-latin-america http://hdl.handle.net/10986/8838

id	okr-10986-8838
recordtype	oai_dc
spelling	okr-10986-88382021-04-23T14:02:42Z The Role of Importers and Exporters in the Determination of the U.S. Tariff Preferences Granted to Latin America Silva, Peri AGRICULTURAL GOODS AGRICULTURE APPAREL PRODUCTS CHAMBERS OF COMMERCE CONSTANT RETURNS TO SCALE CONSUMER SURPLUS CONSUMERS CUSTOMS DOMESTIC MARKET DOMESTIC PRICES DOMESTIC PRODUCERS ECONOMIC ANALYSIS ECONOMIC EFFECTS ELASTICITIES ELASTICITY EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EQUILIBRIUM EQUILIBRIUM PRICES EQUILIBRIUM TARIFF EXPORTERS EXPORTING COUNTRIES EXPORTS FOREIGN EXPORTERS FOREIGN PRODUCERS FORMAL ANALYSIS FREE TRADE FREE TRADE AREA IMPORT PENETRATION IMPORTED GOODS IMPORTING COUNTRY IMPORTS INCOME INCOME DISTRIBUTION INSURANCE INTERNATIONAL TRADE LABOR COSTS LATIN AMERICAN MARKET ACCESS MARKET POWER MULTIPLIERS POLICY INSTRUMENT POLITICAL DISCUSSIONS POLITICAL ECONOMY POSITIVE EXTERNALITIES PREFERENTIAL ACCESS PREFERENTIAL TARIFF PREFERENTIAL TARIFFS PREFERENTIAL TRADE PREFERENTIAL TREATMENT PRODUCERS PRODUCTION PROCESS PROFIT FUNCTIONS QUOTA RENTS SUBSTITUTION EFFECT TARIFF PREFERENCE TARIFF PREFERENCES TARIFF REVENUE TARIFF REVENUES TRADE DIVERSION TRADE LIBERALIZATION TRADE POLICIES TRADE POLICY TRADE PREFERENCES TRADE REGULATIONS TRADE RESTRICTIONS UTILITY FUNCTION WELFARE FUNCTION This paper investigates the role played by domestic importers and foreign exporters in improving preferential access to the domestic market. To this end, the framework used in this paper extends the protection for sale analysis to explicitly model the role of domestic importers and foreign exporters in the determination of preferential trade treatment. The predictions of the model are tested using data on preferential trade between the United States and Latin American countries. The results suggest that Latin American exporters and U.S. importers' lobbying efforts have a significant and important role in determining the extent of preferential access granted by the United States. More interestingly, these findings also show that U.S. importers capture a very substantial share of the rents generated by tariff preferences. These results therefore shed a pessimistic view on preferential trade schemes as a reliable source of gains for developing countries. 2012-06-22T19:42:10Z 2012-06-22T19:42:10Z 2005-02 http://documents.worldbank.org/curated/en/2005/02/5642278/role-importers-exporters-determination-tariff-preferenes-granted-latin-america http://hdl.handle.net/10986/8838 English Policy Research Working Paper; No. 3518 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	AGRICULTURAL GOODS AGRICULTURE APPAREL PRODUCTS CHAMBERS OF COMMERCE CONSTANT RETURNS TO SCALE CONSUMER SURPLUS CONSUMERS CUSTOMS DOMESTIC MARKET DOMESTIC PRICES DOMESTIC PRODUCERS ECONOMIC ANALYSIS ECONOMIC EFFECTS ELASTICITIES ELASTICITY EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EQUILIBRIUM EQUILIBRIUM PRICES EQUILIBRIUM TARIFF EXPORTERS EXPORTING COUNTRIES EXPORTS FOREIGN EXPORTERS FOREIGN PRODUCERS FORMAL ANALYSIS FREE TRADE FREE TRADE AREA IMPORT PENETRATION IMPORTED GOODS IMPORTING COUNTRY IMPORTS INCOME INCOME DISTRIBUTION INSURANCE INTERNATIONAL TRADE LABOR COSTS LATIN AMERICAN MARKET ACCESS MARKET POWER MULTIPLIERS POLICY INSTRUMENT POLITICAL DISCUSSIONS POLITICAL ECONOMY POSITIVE EXTERNALITIES PREFERENTIAL ACCESS PREFERENTIAL TARIFF PREFERENTIAL TARIFFS PREFERENTIAL TRADE PREFERENTIAL TREATMENT PRODUCERS PRODUCTION PROCESS PROFIT FUNCTIONS QUOTA RENTS SUBSTITUTION EFFECT TARIFF PREFERENCE TARIFF PREFERENCES TARIFF REVENUE TARIFF REVENUES TRADE DIVERSION TRADE LIBERALIZATION TRADE POLICIES TRADE POLICY TRADE PREFERENCES TRADE REGULATIONS TRADE RESTRICTIONS UTILITY FUNCTION WELFARE FUNCTION
spellingShingle	AGRICULTURAL GOODS AGRICULTURE APPAREL PRODUCTS CHAMBERS OF COMMERCE CONSTANT RETURNS TO SCALE CONSUMER SURPLUS CONSUMERS CUSTOMS DOMESTIC MARKET DOMESTIC PRICES DOMESTIC PRODUCERS ECONOMIC ANALYSIS ECONOMIC EFFECTS ELASTICITIES ELASTICITY EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EQUILIBRIUM EQUILIBRIUM PRICES EQUILIBRIUM TARIFF EXPORTERS EXPORTING COUNTRIES EXPORTS FOREIGN EXPORTERS FOREIGN PRODUCERS FORMAL ANALYSIS FREE TRADE FREE TRADE AREA IMPORT PENETRATION IMPORTED GOODS IMPORTING COUNTRY IMPORTS INCOME INCOME DISTRIBUTION INSURANCE INTERNATIONAL TRADE LABOR COSTS LATIN AMERICAN MARKET ACCESS MARKET POWER MULTIPLIERS POLICY INSTRUMENT POLITICAL DISCUSSIONS POLITICAL ECONOMY POSITIVE EXTERNALITIES PREFERENTIAL ACCESS PREFERENTIAL TARIFF PREFERENTIAL TARIFFS PREFERENTIAL TRADE PREFERENTIAL TREATMENT PRODUCERS PRODUCTION PROCESS PROFIT FUNCTIONS QUOTA RENTS SUBSTITUTION EFFECT TARIFF PREFERENCE TARIFF PREFERENCES TARIFF REVENUE TARIFF REVENUES TRADE DIVERSION TRADE LIBERALIZATION TRADE POLICIES TRADE POLICY TRADE PREFERENCES TRADE REGULATIONS TRADE RESTRICTIONS UTILITY FUNCTION WELFARE FUNCTION Silva, Peri The Role of Importers and Exporters in the Determination of the U.S. Tariff Preferences Granted to Latin America
geographic_facet	Latin America & Caribbean
relation	Policy Research Working Paper; No. 3518
description	This paper investigates the role played by domestic importers and foreign exporters in improving preferential access to the domestic market. To this end, the framework used in this paper extends the protection for sale analysis to explicitly model the role of domestic importers and foreign exporters in the determination of preferential trade treatment. The predictions of the model are tested using data on preferential trade between the United States and Latin American countries. The results suggest that Latin American exporters and U.S. importers' lobbying efforts have a significant and important role in determining the extent of preferential access granted by the United States. More interestingly, these findings also show that U.S. importers capture a very substantial share of the rents generated by tariff preferences. These results therefore shed a pessimistic view on preferential trade schemes as a reliable source of gains for developing countries.
format	Publications & Research :: Policy Research Working Paper
author	Silva, Peri
author_facet	Silva, Peri
author_sort	Silva, Peri
title	The Role of Importers and Exporters in the Determination of the U.S. Tariff Preferences Granted to Latin America
title_short	The Role of Importers and Exporters in the Determination of the U.S. Tariff Preferences Granted to Latin America
title_full	The Role of Importers and Exporters in the Determination of the U.S. Tariff Preferences Granted to Latin America
title_fullStr	The Role of Importers and Exporters in the Determination of the U.S. Tariff Preferences Granted to Latin America
title_full_unstemmed	The Role of Importers and Exporters in the Determination of the U.S. Tariff Preferences Granted to Latin America
title_sort	role of importers and exporters in the determination of the u.s. tariff preferences granted to latin america
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2005/02/5642278/role-importers-exporters-determination-tariff-preferenes-granted-latin-america http://hdl.handle.net/10986/8838
_version_	1764406983731970048

The Role of Importers and Exporters in the Determination of the U.S. Tariff Preferences Granted to Latin America

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