Impact of PTA on Trade Margins of LDCs in Sub- Saharan Africa: Evidence from the EBA

Ofei, Edmund Okraku (2017): Impact of PTA on Trade Margins of LDCs in Sub- Saharan Africa: Evidence from the EBA.

Abstract

This study investigates the impact of the EU preferential trade agreement of Everything but Arms on the extensive and intensive margins of exports of least developed countries in Sub-Saharan Africa. The extensive margin is defined as the quantity of exported products while the intensive margin is defined as the value of exported products. The study employs the difference-indifference estimator together with fixed effects for a country bilateral product data defined at the HS 6-digit level to investigate the impact for the period 1995-2015. The findings are that the EBA has not had any impact on both trade margins of LDCs in SSA although it has impacted positively on some specific industries. The study goes further to explain how the LDCs in SSA could benefit from the EBA through complementary policies.

• Item Type: MPRA Paper
• Language: English
• Keywords: trade margins, PTA, EBA, difference-in-difference, least developed countries
• Subjects: F - International Economics > F1 - Trade; F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations; F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance; F - International Economics > F6 - Economic Impacts of Globalization; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development; O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O24 - Trade Policy ; Factor Movement Policy ; Foreign Exchange Policy

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