Trade Preferences for Least Developed Countries. Are they Effective? Preliminary Econometric Evidence

CDP Policy Review No. 4

By Stephan Klasen, Inmaculada Martínez-Zarzoso, Felicitas Nowak-Lehmann and Matthias Bruckner

The paper investigates the effectiveness of trade preferences for LDCs. It confirms that overall trade preferences for LDCs increase LDC exports. However, it also finds that effectiveness differs across the nine providers included in the study (EU, US, Canada, Japan, Australia, New Zealand, Norway, the Russian Federation and Turkey) and that only a subset of LDCs is able to benefit from trade preferences.

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