Click here for search results
The DR-CAFTA and the extensive margin : a firm-level analysis, Volume 1
Author:Molina, Ana Cristina; Bussolo, Maurizio; Iacovone, Leonardo; Country:Dominican Republic; Central America;
Date Stored:2010/08/27Document Date:2010/06/01
Document Type:Policy Research Working PaperSubTopics:Markets and Market Access; Export Competitiveness; Free Trade; Debt Markets; Trade Policy
Language:EnglishRegion:Latin America & Caribbean
Report Number:WPS5340Collection Title:Policy Research working paper ; no. WPS 5340
Volume No:1  

Summary: This paper examines the export behavior of Dominican Republic exporters following the implementation of the Dominican Republic-Central America Free Trade Agreement in 2007. Using a firm-level dataset for 2002-2009, the authors investigate the effects of a tariff reduction on the extensive margin. The analysis distinguishes the impact on the entry of new firms, exports of new products, and entry into the Agreement’s markets. The paper analyzes whether the agreement prevents incumbent exporters from exiting the market. The results suggest that tariff cuts had a positive although very small effect on the extensive margin. A decline in tariffs also seems to reduce the probability of exit, but the effect is also small. The evidence calls for complementary policies aiming at helping exporters maximize the benefits of the agreement.

Official Documents
Official, scanned versions of documents (may include signatures, etc.)
File TypeDescriptionFile Size (mb)
PDF 35 pagesOfficial version*2.45 (approx.)
TextText version**
How To Order

* The official version is derived from scanning the final, paper copy of the document and is the official,
archived version including all signatures, charts, etc.
** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
It is provided solely to benefit users with slow connectivity.

Permanent URL for this page: