views expressed in this paper need not reflect those of the World Bank. We would like to thank Larry Hinkle and Ataman Aksoy for numerous comments and suggestions. 2 I.

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The findings, interpretations, and conclusions expressed here do not necessarily reflect the views of the Board of Executive Directors of the World Bank or the governments they represent. The World Bank cannot guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply on the part of the World Bank any judgment of the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is copyrighted. No part of this work may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or inclusion in any information storage and retrieval system, without the prior

comments and suggestions from Brian Ames, Ataman Aksoy, Ishac Diwan, Philip English, Simon Evenett, Mike Finger, Jeni Klugman, Will Martin, Brad McDonald, Richard Newfarmer, Jayanta Roy, and John Wilson. Maria Kasilag provided excellent support in the preparation of the manuscript. The views expressed

, statistical analysis and tables used in the study as well as her helpful comments on the Moldovan economy; Martin Reiser and David Cooper of the EBRD for helpful inputs regarding telecommunications issues in Central Asia; Ataman Aksoy and Nina Budina of the World Bank and Marco Pani, Clinton Shiells

to two referees, Ataman Aksoy, Jagdish Bhagwati, Richard Blackhurst, John Cuddy, Uri Dadush, Mike Finger, Carsten Fink, Will Martin, Keith Maskus, Aaditya Mattoo, Anne McGuirk, Patrick Messerlin, Constantine Michalopoulos, Marcelo Olarreaga, Susan Prowse, Richard Newfarmer, Sarath Rajapatirana , T

The United States grants preferential (tariff and quota free) market access to a list of products from eligible countries in sub-Saharan Africa through the African Growth and Opportunity Act (AGOA). We analyze the increase in prices received by apparel exporters who benefited from AGOA preferences. In the presence of competitive markets, export prices should increase as much as the tariff which was previously collected by the US government. We refer to this price increase as the “tariff preference rent ” since exporters receive this income as the rent for their preferential status. The results show that exporters receive only 1/3rd of this rent and smaller exporters receive less than larger and established ones. We then provide evidence that suggests this may be due to the degree of market power enjoyed by US importers when facing African exporters.

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Macroeconomic and trade policies must change signicanty to shift India's economy to a more export-oriented path- both to overcome foreign exchange shortages and to rely more on external demand for industrial output. High elasticities in the manufacturing sector indicate that the economy would also respond favorably to changes in incentives. Policy Research WoddngBapsdiunaminate thefindinp of woi in progm sand ogethc czdangcofideasamwngBank staf and al others inteed in de Wlopernits TBesepapers, disti d by theResrchAdvisory Stmff,cay thenames.oftbeauthorsrelect only theirviews, andsbouldbeuud and cdXdaccordingly.Thefindingt,intewtims.asdeanchisionsaretheaulthosteon.Theyshould not be attributed to the Wodd Bank, its Board of Dirsm, its managemaet, or any of its member countniaL Pu bl ic Di sc lo su re A ut ho riz ed Pu bl ic Di sc lo su re A ut ho riz ed Pu bl ic Di sc lo su re A ut ho riz ed Pu bl ic Di sc lo su re A ut ho riz ed

The findings, interpretations, and conclusions expressed herein are those of the author(s) and do not necessarily reflect the views of the Board of Executive Directors of the World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of the World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and