| ID | 186571 |
| Title Proper | Democratic Reforms and Trade |
| Other Title Information | Evidence from the European Union’s Generalized System of Preferences for Myanmar |
| Language | ENG |
| Author | Tanaka, Kiyoyasu ; Jaminola, Leonardo M |
| Summary / Abstract (Note) | The European Union (EU) re-instated the Generalized System of Preferences (GSP) for Myanmar from 2013 following the newly established “democratic” government in 2011. This paper highlights a series of democratic reforms in Myanmar as a key driver of the EU’s GSP re-instatement. We estimate the causal impact of duty-free access on Myanmar’s exports by exploiting the fact that the GSP re-instatement corresponded to a removal of Most-Favoured-Nation tariff rates in the EU market, which was plausibly exogenous for industries in Myanmar. The results show that the GSP re-instatement had a significantly large positive effect on Myanmar’s exports, with the most pronounced impact on the volume of garment exports. The EU’s GSP played a key role in linking democratic reforms to subsequent trade growth in Myanmar. |
| `In' analytical Note | Journal of Southeast Asian Economies (ASEAN Economic Bulletin Change the Name ) Vol. 39, No. 2; Aug 2022: p.148-170 |
| Journal Source | Journal of Southeast Asian Economies (ASEAN Economic Bulletin Change the Name ) 2022-08 39, 2 |
| Key Words | European Union ; Trade ; Myanmar ; Democratic Reforms |