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Are trade preferences a Panacea? The export impact of the African growth and Opportunity Act

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  • Fernandes, Ana M.
  • Forero, Alejandro
  • Maemir, Hibret
  • Mattoo, Aaditya

Abstract

Does “infant industry” preferential access durably boost exports? Using country-product-year data for 1992–2017 and triple-differences regressions, we show that the African Growth and Opportunity Act (AGOA) enhanced apparel exports of African countries on average. But the impact leveled off after the Multi-Fiber Arrangement unleashed competition from Asian countries. Furthermore, the positive average impact masks regional heterogeneity: East Africa’s late-bloomers offset Southern Africa’s boom-bust pattern. Overall, we find little evidence that preferences durably boosted exports.

Suggested Citation

  • Fernandes, Ana M. & Forero, Alejandro & Maemir, Hibret & Mattoo, Aaditya, 2023. "Are trade preferences a Panacea? The export impact of the African growth and Opportunity Act," World Development, Elsevier, vol. 162(C).
    • Handle: RePEc:eee:wdevel:v:162:y:2023:i:c:s0305750x22003047
    DOI: 10.1016/j.worlddev.2022.106114
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    More about this item

    Keywords

    Tariff preferences; Africa; AGOA; GSP; Exports; Multi-Fiber Arrangement;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F68 - International Economics - - Economic Impacts of Globalization - - - Policy
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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