The impact of trade preferences on exports of developing countries: the case of the AGOA and CBI preferences of the USA

Abstract

In this paper we study the impact of AGOA and CBTPA preferences on the African and Caribbean Basin beneficiaries respectively. Our methodology consists of modelling the selection in exporting that occurs and to account for the zero trade occurring at the HS 6 digit level of disaggregation used in the paper. The AGOA impact has in the literature been found to be driven mainly by apparel and textiles and oil and energy related products. We however, do find a strong impact of the AGOA and CBTPA preferences for the beneficiary countries