Do South-South Trade Agreements Increase Trade? Commodity-Level Evidence from COMESA

 
Author/Editor: Mayda, Anna Maria ; Steinberg, Chad
 
Publication Date: February 01, 2007
 
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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: South-South trade agreements are proliferating: Developing countries signed 70 new agreements between 1990 and 2003. Yet the impact of these agreements is largely unknown. This paper focuses on the static effects of South-South preferential trade agreements stemming from changes in trade patterns. Specifically, it estimates the impact of the Common Market for Eastern and Southern Africa (COMESA) on Uganda's imports between 1994 and 2003. Detailed import and tariff data at the 6-digit harmonized system level are used for more than 1,000 commodities. Based on a difference-in-difference estimation strategy, the paper finds that-in contrast to evidence from aggregate statistics-COMESA's preferential tariff liberalization has not considerably increased Uganda's trade with member countries, on average across sectors. The effect, however, is heterogeneous across sectors. Finally, the paper finds no evidence of trade-diversion effects.
 
Series: Working Paper No. 07/40
Subject(s): International trade agreements | Uganda | Imports | Commodities | Developing countries | Common Market for Eastern and Southern Africa | Trade models

Author's Keyword(s): South-South trade agreements | trade creation | trade diversion
 
English
Publication Date: February 01, 2007
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA2007040 Pages: 35
Price:
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