Do nonreciprocal preference regimes increase exports?

Resumen

This paper investigates whether and to what extent nonreciprocal preference regimes have increased developing countries� exports to richer countries. Moreover, it analyzes how they have affected donors� exports to beneficiary countries. Using recent developments in the econometric analysis of the gravity equation over the period 1990-2008, we find robust evidence that, on the whole, nonreciprocal preference regimes and GSP schemes have had an economically significant effect on exports from developing countries. However, the estimation of catch-all dummies masks heterogeneous results for the individual schemes. Finally, we find that nonreciprocal regimes have also increased exports from donors to beneficiary countries.