By Tiago N Caldeira
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Extra info for Economics of developing countries
This particular result is closely related to the more accurate modeling of preferential trade agreements in Bouët et al. (2005b), confirming that where the effective rate of utilization of preferential regimes are quite high, negative effects in terms of preference erosion are more likely. Bouet (2006) presents simulations where imperfect competition and product differentiation in industry and services bring negative impacts for countries specializing in the primary sector after trade liberalization.
At the same time, it was acknowledged that exports were important as a source of foreign exchange and that the local market might be too small for local industry to be able to capture economies of scale. Therefore, in 1968, the Generalized System of Preferences (GSP) was launched under UNCTAD auspices and called for developed countries to provide preferential access to developing-country exports on a voluntary basis. 4 SDT became an integral part of the URAA and was further emphasized in the DDA.
34 Valeria Costantini Table 3. Welfare impacts in the most recent simulations of Doha Round negotiations Authors Assumptions for the agricultural sector Scenarios gains in 2015 compared to baseline calculated as the annual gains as % of base GDP Anderson et Products as imperfect substitutes Agriculture1 al. (2005a) Factor markets with perfect competition Global1 Labor and capital mobile between sectors Global with Full employment productivity All preferential agreement are taken into change2 account Doha scenario with productivity change3 Agriculture4 Francois et Products as imperfect substitutes al.