Download or read book Caribbean Bananas written by Cleary Haines and published by International Monetary Fund. This book was released on 2010-03-01 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the macroeconomic effects of the erosion of trade preferences, with a focus on the export of Caribbean bananas to Europe. Estimates are made of the magnitude of implicit assistance provided over a period of three decades to eastern Caribbean countries through banana trade preferences. The value of such assistance rose until the early 1990s, and has declined precipitously since then. Using vector autoregressive analysis, the paper finds that changes in the level of implicit assistance have had a considerable macroeconomic impact, especially on Caribbean real GDP growth.