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Author:Beckmann, D. G.
Title:A note on estimating the static effects of the GSP
Journal:Weltwirtschaftliches Archiv
1988 : VOL. 124:3, p. 566-569
Index terms:TARIFFS
CUSTOMS UNIONS
MATHEMATICAL MODELS
Language:eng
Abstract:Baldwin and Murray state in an often cited 1977 article that "the developing countries stand more to gain from MFN tariff cuts than they will lose from the simultaneous erosion of their GSP (General System of Preferences) preferential tariff margins ..." This note demonstrates that BMs estimates are biased for (i) they fail to recognize the impact on donor country consumption and (ii) are based upon fob values rather than the values actually paid by the consumers in the donor country.
SCIMA record nr: 69162
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