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GTAP Resources: Resource Display

GTAP Resource #6914

"Stay firm: Importer-exporter relations and the use of trade preferences"
by Nilsson, Lars and Wouter Decoster

The literature covering the use (and non-use) of trade preferences is a relatively recent strand of research. It has grown richer over the past decade thanks to improved data availability and a greater interest in the issue following the substantial increase in the number of preferential trading arrangements notified to the WTO, reaching 355 in early 2023. Some of the latest papers in this area suggest that the use of firm level data, ideally firm-pair level data linking importing firms with exporting firms is needed to gain a better understanding of why some transactions use preferences while others do not.

However, the few papers that have made use of firm level data to assess the use of trade preferences tend to focus on firm characteristics, such as the extent to which e.g., large firms use preferences to a greater extent than small firms do, rather than examining the role of individual firms and firm-pairs. That is, the literature does not cover analyses of whether an importing firm consistently uses preferences when importing from a specific exporter or from multiple exporters. Similarly, there is no work examining the number of exporting firms supplying the same product to the same importer and what the role is of the firm-pair specific bilateral relationship for the use of trade preferences.

To start filling this gap in the literature, this paper makes use of a dataset covering transaction level data of Belgian firms’ imports from exporting firms in eight countries (Canada, Egypt, Israel, Japan, Korea, Mexico, South Africa and Switzerland). It presents characteristics of preference eligible imports and use of trade preferences by firm-pair, firm-product and firm-pair-product. The empirical part of the paper assesses the impact of these dimensions, and other factors, on the use of trade preferences.

Resource Details (Export Citation) GTAP Keywords
Category: 2023 Conference Paper
Status: Not published
By/In: Presented during the 26th Annual Conference on Global Economic Analysis (Bordeaux, France)
Date: 2023
Created: Nilsson, L. (4/14/2023)
Updated: Nilsson, L. (4/14/2023)
Visits: 110
- Preferential trading arrangements
- European Union

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