Several Least-Developed Countries (LDCs) will graduate from the LDC status in the coming decade implying that they will lose preferential access to export markets. We quantify the expected impact of LDC graduation on exports of graduating and non-graduating LDCs incorporating detailed preference utilization data in a partial equilibrium model. We compare the results under actual and full preference utilization rates. Separately, we explore how underutilization of tariff preferences affects the exports of countries benefiting from such preferences.

JEL: F13: International Economics / Trade / Trade Policy ; International Trade Organizations ; F17: International Economics / Trade / Trade Forecasting and Simulation ; O19: Economic Development, Innovation, Technological Change, and Growth / Economic Development / International Linkages to Development ; Role of International Organizations

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  • Published online: 28 Feb 2022
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