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1 – 10 of 411The European Union's Generalised System of Preferences (GSP) has existed for over 40 years and it aimed to promote the export growth in the developing countries. The purpose of…
Abstract
Purpose
The European Union's Generalised System of Preferences (GSP) has existed for over 40 years and it aimed to promote the export growth in the developing countries. The purpose of this paper is to highlight the evolution and characteristics of the EU's GSP regime and examine the effectiveness of the EU's GSP in promoting the export growth of ten ASEAN beneficiary countries.
Design/methodology/approach
The authors analyse the trade flows between the EU and ASEAN beneficiary countries under the GSP scheme by referring to trade data (1990‐2007) at the aggregate level, the sectoral level and individual beneficiary country level.
Findings
The authors find that using the EU's GSP to promote the exports growth of the ASEAN countries has very limited effectiveness. Although the total EU imports from the ASEAN countries experienced a significant increase during the period 1990‐2007, the preferential imports under the GSP scheme remained stagnated at the same period. However, the least developed ASEAN members reported very high utilization rates and successfully exploited GSP preferences for pushing up their exports to the European market.
Originality/value
This work provides new evidence on whether the EU's GSP really works and to what extent the EU's GSP enhances the export growth of ASEAN beneficiary countries. The empirical findings may provide trade policymakers with some guidance in making EU trade policy.
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The preferential US trade programme faces renewal or lapse by December 31. South-east Asia’s economies are structured to take advantage of the GSP and many of the products…
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DOI: 10.1108/OXAN-DB225197
ISSN: 2633-304X
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Topical
Exports help developing countries to expand their production, promote industrialization and accelerate their economic growth. They played an important part in the economic…
Abstract
Exports help developing countries to expand their production, promote industrialization and accelerate their economic growth. They played an important part in the economic transformation of Southeast Asian countries. The Generalized System of Preferences (GSP) is one of the ways in which developing countries can increase their exports to the markets of developed nations. The GSP, a unilateral, non‐reciprocal program agreed under the United Nations provides preferential duty entry to numerous products imported into developed countries by eligible developing countries. The objective of this study is to examine the role of GSP in stimulating exports of developing countries. It also provides a comparative appraisal of the GSP schemes of the United States and Japan. The paper also makes certain recommendations to make GSP schemes more efficient and applicable to particular situations.
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The aim of this paper is to investigate the impact of changes in the Generalized System of Preferences of the European Union, on the EU GSP imports from beneficiary countries in…
Abstract
Purpose
The aim of this paper is to investigate the impact of changes in the Generalized System of Preferences of the European Union, on the EU GSP imports from beneficiary countries in ASEAN and China, and Latin America, respectively, and the utilization of GSP benefits by these countries for the period 1994‐2007.
Design/methodology/approach
The econometric model specifications used is with unlagged and one year lagged reactions. GSP dummy variables are added in order to test whether the changes in the EU GSP has had impact on bilateral trade flows and the degree of utilization.
Findings
The paper finds that EU GSP agricultural imports are negatively affected by the changes in the EU GSP system, but these of industrial products seem to have positively reacted to changes in the EU GSP. For imports of textile products, the results are not significant. It is also found that ASEAN plus China are significantly benefiting more from the EU GSP for industrial and textile products than the Latin American countries, but the changes in the GSP had no significant different effect on both groups of countries. The authors estimations also show that the graduation mechanism in the EU GSP, against beneficiary countries with higher EU market shares, seems to be effective for industrial products, but in contrast, is working in favour of such countries for textile products. By and large, the other graduation mechanism in the EU GSP linking GSP benefits and level of development of the beneficiary country has not been effective.
Originality/value
The paper is the first to address the issue how the many changes in the EU GSP since 1994 have affected the exports and GSP utilization of beneficiary countries.
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Hege Medin and Maren Elise Bachke
Imports of cut roses increased after Norway implemented a preferential tariff scheme for the least developed countries in 2002. When the scheme was extended to more countries in…
Abstract
Purpose
Imports of cut roses increased after Norway implemented a preferential tariff scheme for the least developed countries in 2002. When the scheme was extended to more countries in 2008 – among them Kenya – imports exploded. This article studies the subsequent changes in supply channels, import costs and the way Norwegian firms imported.
Design/methodology/approach
Qualitative data, obtained through interviews among five rose importers, are combined with quantitative data for all importing firms and transactions in Norway for the years 2003–2014. These data are analysed in light of recent economic theories on international trade.
Findings
When Kenya was included in the scheme, imports from Europe and domestic production in Norway decreased substantially. Imports from some African countries with low income levels also declined. Importing under GSP involves high fixed import costs due to stringent procedures. Each firm's imports increased gradually, and over time learning may have facilitated importing. Direct trade with African producers and control over the logistics chain seem to have become more important.
Research limitations/implications
The analysis builds mainly on data for Norwegian importers, not for African exporters.
Practical implications
Simplifying the GSP procedures could increase Norwegian imports from developing countries and induce establishment of new trade relationships, perhaps also for other products than roses.
Originality/value
Using a mixture of original qualitative data as well as unique, detailed and comprehensive quantitative data, the article provides new insights into how preferential tariff reductions for developing countries’ exports to a developed country affect trade and buyer–supplier relationships.
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This paper aims to understand the specific role of value chain flexibility (VCF) in the strategies of green service production (GSP) in healthcare. The study explores the key…
Abstract
Purpose
This paper aims to understand the specific role of value chain flexibility (VCF) in the strategies of green service production (GSP) in healthcare. The study explores the key dimensions of VCF and their linkages with the current GSP strategies in healthcare firms.
Design/methodology/approach
The study uses an exploratory case study with three representative national-level healthcare firms in India. A multiple case study methodology was utilized to explore the relationships between GSP and VCF.
Findings
The findings of the study suggest that several strategies for GSP require the support of multiple dimensions of VCF. More importantly, the role of each dimension of VCF depends upon the innovativeness of green service design, green procurement and green service practices.
Research limitations/implications
The study was conducted in the emerging healthcare market of India. Thus, the generalizability of the framework needs to be tested in another context. The study reports the employee's perception, and the patients’ (customers) views were not included.
Originality/value
The study is a first step to understand the theoretical perspectives of the relationships between GSP and VCF by exploring the underlying concepts. Furthermore, the study explicates the dynamics of their interplay in a systematic way and contributes to a framework of GSP and VCF in the healthcare context.
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Christian Ritzel, Andreas Kohler and Stefan Mann
The purpose of this paper is to determine if the institutional quality of developing countries (DCs) and least-developed countries (LDCs) contributes to a significant increase in…
Abstract
Purpose
The purpose of this paper is to determine if the institutional quality of developing countries (DCs) and least-developed countries (LDCs) contributes to a significant increase in the utilization rate of the Swiss generalized system of preferences in the agro-food sector.
Design/methodology/approach
The authors use state of the art regression techniques accounting for zero values to identify if the institutional quality – separately depicted by the Worldwide Governance Indicators, the Index of Economic Freedom and the Human Development Index – can contribute in overcoming non-tariff barriers (NTBs) to trade.
Findings
The institutional quality exerts a consistent positive effect on the level of utilization of trade preferences.
Research limitations/implications
Swiss food trade represents, of course, only a very small share of world trade, therefore it would be worthwhile to extend the analysis to other countries and sectors.
Practical implications
Industrialized countries’ development policies should more strongly focus on capacity building in DCs and LDCs to strengthen trade-related institutions.
Originality/value
The study focuses on an often underemphasized element in international trade relations – the role of the institutional quality in overcoming NTBs to trade.
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The aim of this paper is to critically analyse the trade preferences offered by the European Union (EU) to developing countries under the Cotonou Agreement and the Generalized…
Abstract
Purpose
The aim of this paper is to critically analyse the trade preferences offered by the European Union (EU) to developing countries under the Cotonou Agreement and the Generalized System of Preferences (GSP) in relation to trade in sugar. There is a need for a timely examination of this area, given the context of the ACP‐EU Economic Partnership Agreements and the recent termination of the ACP‐EU Sugar Protocol (SP).
Design/methodology/approach
The paper focuses on the Caribbean region as a whole with a particular focus on two non‐least developed ACP Caribbean countries, Guyana and Jamaica which held the largest sugar quotas among ACP Caribbean which benefited from the SP.
Findings
The EU trade regime changes have affected the value of the African‐Caribbean and Pacific (ACP) sugar trade regime and could have a serious impact on the amount of sugar available for purchase on the global market. The paper argues that ACP Caribbean countries could find more profitable to grow sugarcane as an agricultural commodity to produce biofuel, which is currently in high demand.
Research limitations/implications
The analysis in this paper is limited to the arrangements pertaining to developing countries and therefore excludes those relating to least developed countries. Trade in more highly processed sugars such as fructose or glucose, together with the growing trade in biofuel refined from sugar beet and sugar cane are also outwith the scope of this discussion.
Originality/value
The paper deals with an intricate issue. It discusses the socio‐economic impact of the trade regime changes on the selected Caribbean countries and includes a section on recommendations given the economic weight of sugar for these countries.
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Rebekah D. Moore and Donald Bruce
We examine whether variations in the most fundamental aspects of state corporate income tax regimes affect state economic activity as measured by personal income, gross state…
Abstract
We examine whether variations in the most fundamental aspects of state corporate income tax regimes affect state economic activity as measured by personal income, gross state product, and total non-farm employment. We focus on a variety of statutory components of state corporate income taxes that apply broadly in most U.S. states and for most multi-state corporate taxpayers. Our econometric strategy consists of a series of fixed effects panel regressions using state-level data from 1996 through 2010. Our results reveal important interaction effects of tax rates and policies, suggesting that policy makers should avoid making decisions about tax rates in isolation. The results demonstrate a relatively consistent negative economic response to the combination of high tax rates with throwback rules and heavy sales factor weights. Combined reporting has no discernible effect on personal income, GSP, or employment after controlling for tax rates, apportionment, and throwback rules. In an effort to gauge the relative impacts of tax policies on the location of economic activity, we also estimate alternative models in which each state’s economic activity is measured as a share of the national economic activity in each year. Statistically significant effects for tax rates, apportionment formulas, and throwback rules in the shares models suggest that at least some of their impact involves the movement of activity across state lines, thereby leaving open the possibility of a zero-sum game among the states.
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