The DR-CAFTA and the Extensive Margin [electronic resource] : A Firm-Level Analysis / Molina, Ana Cristina
Material type: TextPublication details: Washington, D.C., The World Bank, 2010Description: 1 online resource (34 p.)Subject(s): Debt Markets | Economic policy | Export Competitiveness | Export diversification | Export growth | Export market | Exporters | Exports | Finance and Financial Sector Development | Foreign markets | Free Trade | Free trade | International Economics and Trade | Macroeconomics and Economic Growth | Market access | Markets and Market Access | Regional trade | Regional trade agreements | Tariff reduction | Tariff reductions | Trade agreement | Trade costs | Trade creation | Trade liberalization | Trade partners | Trade Policy | Trade preferencesAdditional physical formats: Molina, Ana Cristina.: The DR-CAFTA and the Extensive Margin.Online resources: Click here to access online Abstract: This paper examines the export behavior of Dominican Republic exporters following the implementation of the Dominican Republic-Central America Free Trade Agreement in 2007. Using a firm-level dataset for 2002-2009, the authors investigate the effects of a tariff reduction on the extensive margin. The analysis distinguishes the impact on the entry of new firms, exports of new products, and entry into the Agreement's markets. The paper analyzes whether the agreement prevents incumbent exporters from exiting the market. The results suggest that tariff cuts have a positive although small effect on the extensive margin. A decline in tariffs also seems to reduce the probability of exit, but the effect is small. The evidence calls for complementary policies aiming at helping exporters maximize the benefits of the agreement.This paper examines the export behavior of Dominican Republic exporters following the implementation of the Dominican Republic-Central America Free Trade Agreement in 2007. Using a firm-level dataset for 2002-2009, the authors investigate the effects of a tariff reduction on the extensive margin. The analysis distinguishes the impact on the entry of new firms, exports of new products, and entry into the Agreement's markets. The paper analyzes whether the agreement prevents incumbent exporters from exiting the market. The results suggest that tariff cuts have a positive although small effect on the extensive margin. A decline in tariffs also seems to reduce the probability of exit, but the effect is small. The evidence calls for complementary policies aiming at helping exporters maximize the benefits of the agreement.
There are no comments on this title.