Caribbean Bananas: The Macroeconomic Impact of Trade Preference Erosion

By Paul Cashin, Montfort Mlachila, Cleary Haines

March 1, 2010

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Paul Cashin, Montfort Mlachila, and Cleary Haines. Caribbean Bananas: The Macroeconomic Impact of Trade Preference Erosion, (USA: International Monetary Fund, 2010) accessed September 18, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper examines the macroeconomic effects of the erosion of trade preferences, with a focus on the export of Caribbean bananas to Europe. Estimates are made of the magnitude of implicit assistance provided over a period of three decades to eastern Caribbean countries through banana trade preferences. The value of such assistance rose until the early 1990s, and has declined precipitously since then. Using vector autoregressive analysis, the paper finds that changes in the level of implicit assistance have had a considerable macroeconomic impact, especially on Caribbean real GDP growth.

Subject: Agricultural commodities, Exports, Tariffs, Trade liberalization, Trade relations

Keywords: Country authorities, EU banana regime, EU export unit value, Real GDP, Trade preference, WP

Publication Details

Pages:

42
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2010/059
Stock No:

WPIEA2010059
ISBN:

9781451963793
ISSN:

1018-5941

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