Losses of Tariff Preferencces and the Export Performance of the Less-Developed Countries

This paper presents cross-sectional estimates of influences on the shares of individual LDCs in US import markets during years in which US tariffs rose. The tariff increases were specific to country and product and they resulted from the withdrawal of benefits under the Generalized System of Preferences. The paper confirms the hypotheses that the negative impact of a tariff increase is stronger (a) the more elastic is the import demand, (b) the slower is the growth in demand, and (c) the smaller is the cost or quality advantage of an LDC. The latter is measured by several proxies, such as initial market shares and exchange rate changes.

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	MacPhee, Craig R Paul C. Burmeister College Professor of Economics Expertise: International - Asia International - Europe International Trade & Finance NAFTA Public Policy Analysis Economics CBA 353 P.O. Box 880489 University of Nebraska-Lincoln Lincoln, NE 68588-0489, USA Phone: (402) 472-2449 Fax: (402) 472-9700 cmacphee1@unl.edu	MacPhee, Craig R	Economics