Complements or substitutes? Preferential and multilateral trade liberalization at the sectoral level

Arbeitspapier

This paper explores the relationship between preferential and multilateral trade liberalization at the sectoral level using a unique dataset that includes data on most favored nation (MFN) and bilateral preferential tariffs at the 4-digit ISIC level for 11 Latin American countries over the period 1985-2005. We find evidence of heterogeneity across sectors. While in some industries, complementary effects between both kinds of trade liberalization are observed, in others no significant links are detected and-in a few cases-even substitutability seems to prevail. Variation across sectors appears to be systematically related to both import demand elasticities and countries' sectoral comparative advantages.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IDB Working Paper Series ; No. IDB-WP-151

Classification and Topics

• Classification: Wirtschaft ; Trade Policy; International Trade Organizations ; Empirical Studies of Trade ; Single Equation Models; Single Variables: General
• Subject: Trade Liberalization ; Regionalism ; Latin America

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Estevadeordal, Antoni ; Volpe Martincus, Christian ; Ando, Mitsuyo
• Event: Veröffentlichung
• (who): Inter-American Development Bank (IDB)
• (where): Washington, DC
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/115384
• Last update: 10.03.2025, 11:45 AM CET