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The effects of the GSTP on trade flow: mission accomplished?

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  • Masahiro Endoh

Abstract

This paper investigates whether the Global System of Trade Preferences among developing countries (GSTP) achieves its intent to increase the trade of capital goods between member countries. For this purpose, trade data disaggregated by the degree of commodity differentiation and various GSTP regional dummies are employed in a gravity equation. Estimation results say that the value of trade between GSTP member countries has increased significantly since the formation of the GSTP in 1989, and the trade of differentiated commodities has increased remarkably compared with other commodities. Therefore, it can be asserted that the mission of the GSTP has been accomplished successfully.

Suggested Citation

  • Masahiro Endoh, 2005. "The effects of the GSTP on trade flow: mission accomplished?," Applied Economics, Taylor & Francis Journals, vol. 37(5), pages 487-496.
    • Handle: RePEc:taf:applec:v:37:y:2005:i:5:p:487-496
    DOI: 10.1080/0003684042000318182
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    References listed on IDEAS

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    1. Linnemann, Hans & Verbruggen, Harmen, 1991. "GSTP tariff reduction and its effects on south-south trade in manufactures," World Development, Elsevier, vol. 19(5), pages 539-551, May.
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    Cited by:

    1. Raú l Serrano & Vicente Pinilla, 2012. "The long-run decline in the share of agricultural and food products in international trade: a gravity equation approach to its causes," Applied Economics, Taylor & Francis Journals, vol. 44(32), pages 4199-4210, November.
    2. Shujiro Urata & Misa Okabe, 2009. "The Impacts Of Free Trade Agreements On Trade Flows: An Application Of The Gravity Model Approach," World Scientific Book Chapters, in: Christopher Findlay & Shujiro Urata (ed.), Free Trade Agreements In The Asia Pacific, chapter 6, pages 195-239, World Scientific Publishing Co. Pte. Ltd..
    3. Joanne Gowa & Raymond Hicks, 2012. "The most-favored nation rule in principle and practice: Discrimination in the GATT," The Review of International Organizations, Springer, vol. 7(3), pages 247-266, September.
    4. Neil Foster & Robert Stehrer, 2011. "Preferential trade agreements and the structure of international trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 147(3), pages 385-409, September.
    5. Simone Juhasz Silva & Douglas Nelson, 2012. "Does Aid Cause Trade? Evidence from an Asymmetric Gravity Model," The World Economy, Wiley Blackwell, vol. 35(5), pages 545-577, May.

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