{"title":"Democratic Reforms and Trade: Evidence from the European Union's Generalized System of Preferences for Myanmar","authors":"Kiyoyasu Tanaka, Toshihiro Kudo","doi":"10.1355/ae39-2c","DOIUrl":null,"url":null,"abstract":"Abstract: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.","PeriodicalId":43712,"journal":{"name":"Journal of Southeast Asian Economies","volume":"39 1","pages":"148 - 170"},"PeriodicalIF":0.8000,"publicationDate":"2022-11-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Southeast Asian Economies","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1355/ae39-2c","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ECONOMICS","Score":null,"Total":0}
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Abstract
Abstract: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.
期刊介绍：
The Journal of Southeast Asian Economies (JSEAE) is a peer-reviewed multi-disciplinary journal focusing on economic issues in Southeast Asia. JSEAE features articles based on original research, research notes, policy notes, review articles and book reviews, and welcomes submissions of conceptual, theoretical and empirical articles preferably with substantive policy discussions. Original research articles and research notes can be country studies or cross-country comparative studies. For quantitative-oriented articles, authors should strive to ensure that their work is accessible to non-specialists. Submitted manuscripts undergo a rigorous peer-review process – two reviewers for original research articles and one reviewer for research notes and policy notes. The journal is published three times a year: April, August and December.
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