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The trade impact of European Union agricultural preferences

By Maria Cipollina and Luca Salvatici


We assess the impact on agricultural trade of European Union (EU) trade policies, using a gravity model based on disaggregated trade flows from 161 developing countries (DCs) to 15 EU member countries. We use a sample selection framework to account for potential selection bias of positive trade flows and provide an explicit measure for relative preference margins. From a policy perspective, our results debunk some of the most widespread criticisms of preferential policies: EU preferences matter and have a positive impact on DCs agricultural exports at both the extensive and intensive margins, although with significant differences across sectors.preferential trade policy, agricultural trade, gravity model, European trade policy,

DOI identifier: 10.1080/17487870903546259
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