Has the Multilateral Hong Kong Ministerial Decision on Duty Free Quota Free Market Access Provided a breakthrough in the Least Developed Countries' export performance?

The analysis is conducted over a sample of 41 LDCs, with data spanning the period 1998-2013. The empirical analysis examines both the average effect and the short term/medium term effect. Results indicate that on average, this multilateral decision has exerted a positive effect on LDCs' performance on merchandise exports, with this average positive effect being solely driven by a positive effect on LDCs' export performance on primary products; the average effect on manufacturing exports has been statistically nil.

In the short and medium term, this decision has exerted a positive effect on LDCs' merchandise export performance, as well as on the components of the latter, namely both primary product exports and manufacturing exports. However, the positive effect on primary product exports appears to be far higher than that on manufacturing exports. These findings have important policy implications regarding reflections on the way LDCs could utilize their policy flexibilities in the WTO Agreements to diversify their exports away from the primary sector and toward manufacturing and/or services sector.  

 

No: ERSD-2016-06

Authors: Sèna Kimm Gnangnon and Shishir Priyadarshi, WTO

Manuscript date: July 2016

Key Words:

Multilateral Hong Kong Ministerial Decision on DFQF; Export Performance; Least Developed Countries

JEL classification numbers:

F13, F14, F15, F40.

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Disclaimer 

This is a working paper, and hence it represents research in progress. The opinions expressed in this paper are those of its author. They are not intended to represent the positions or opinions of the WTO or its members and are without prejudice to members' rights and obligations under the WTO. Any errors are attributable to the author.

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