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Small trade flows, compliance costs and trade preferences: The case of EU imports from African LDCs

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  • Nilsson, Lars
  • Dotter, Caroline

Abstract

Previous work has shown that a significant number of preference eligible goods are imported into the EU from developing countries at relatively small values and that the rate of preference utilisation of these imports are low and in many cases zero. This fact is unobserved in the aggregate figures and thus rarely noticed. This paper examines this phenomenon further by using monthly data on EU imports from African LDCs at the lowest level of (publicly) available aggregation thereby coming close to transaction level data. It identifies the average values of preference eligible imports, utilising and not utilising preferences, by country and product category and test their empirical relevance for explaining the African LDCs' preference utilisation rates.

Suggested Citation

  • Nilsson, Lars & Dotter, Caroline, 2011. "Small trade flows, compliance costs and trade preferences: The case of EU imports from African LDCs," Economics Discussion Papers 2011-42, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwedp:201142
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    References listed on IDEAS

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    2. Yves Bourdet & Joakim Gullstrand & Karin Olofsdotter (ed.), 2007. "The European Union and Developing Countries," Books, Edward Elgar Publishing, number 3731.
    3. Persson, Maria & Wilhelmsson, Fredrik, 2006. "Assessing the Effects of EU Trade Preferences for Developing Countries," Working Papers 2006:4, Lund University, Department of Economics, revised 26 Jun 2006.
    4. Miriam Manchin, 2006. "Preference Utilisation and Tariff Reduction in EU Imports from ACP Countries," The World Economy, Wiley Blackwell, vol. 29(9), pages 1243-1266, September.
    5. Luca De Benedictis & Luca Salvatici (ed.), 2011. "The Trade Impact of European Union Preferential Policies," Springer Books, Springer, number 978-3-642-16564-1, January.
    6. Papke, Leslie E & Wooldridge, Jeffrey M, 1996. "Econometric Methods for Fractional Response Variables with an Application to 401(K) Plan Participation Rates," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 619-632, Nov.-Dec..
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    More about this item

    Keywords

    trade preferences; preference utilisation; small trade flows; compliance costs; LDCs;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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    This paper has been announced in the following NEP Reports:

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