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Preferential trade liberalization and the path-dependent expansion of exports

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Preferential Trade Liberalization and the Path-Dependent Expansion of Exports

Borchert, Ingo - 2007

In the presence of sunk costs to exporting, preferential tariff liberalization may have a prolonged, dynamic effect on the pattern of a beneficiary country's exports. In particular, preferential tariff liberalization might trigger a geographic spread of exports to third markets outside the...

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