Firm-Level Utilization Rates of Regional Trade Agreements: Importers’ Perspective

Hayakawa, Kazunobu; Laksanapanyakul, Nuttawut; Yoshimi, Taiyo

doi:10.2139/ssrn.4093038

Cited by 3 publications

(3 citation statements)

References 13 publications

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“…According to Ulloa and Wagner (2012), the FTAs may lead to the rising costs for the smaller exporter as the larger companies may utilize the FTA, leading to an increase in exports and consequently the factor prices. In a study by Hayakawa et al (2019) a removal in the costs relating to using of preferences and compliance of the ROO in Japanese exporting firms led to rise in the usage of FTA in Japan. North America Free Trade Agreement (NAFTA) had an average utilization rate of 64 percent across sectors in 2000 (Cadot et al, 2002).…”

Section: Literature Reviewmentioning

confidence: 99%

Factors Determining Utilization of Free Trade Agreements by Indian Textile and Clothing Companies: A Conceptual Framework Model

Bajaj,

Sharma

2022

Paradigm: A Management Research Journal

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The study focusses on the determinants to the use of trade agreements by Indian textile and clothing companies. A primary sample survey of 310 export companies was conducted in major clusters. Subsequently a conceptual framework model was developed to understand the various determinants influencing the use of trade agreements by the textile and clothing export firms in India. The study identified 8 dimensions of impediments, 4 determinants of costs, 5 benefits and 11 enablers to the use of trade agreements. A binary regression modelling was performed on the data set to identify the critical factors, which determine the usage of trade agreements using SPSS 16. The results obtained showed that the probability of usage of trade agreements decreased with documentation costs, cost associated with time to obtain preferential certificate, non-tariff barriers in partner countries and lack of knowledge. The probability of usage was positively significant for gaining new buyers under the agreements, government outreach, support from public sector bodies and ease in issuance of certificates. This study will provide a foundation to understand the determinants of usage of trade agreements in future. We conclude that a more SME centric approach will help in making trade agreements more inclusive.

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Section: Literature Reviewmentioning

confidence: 99%

Factors Determining Utilization of Free Trade Agreements by Indian Textile and Clothing Companies: A Conceptual Framework Model

Bajaj,

Sharma

2022

Paradigm: A Management Research Journal

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“…Using data on PURs for the EU,Crivelli et al (2021) identify products with PURs below 70% and preference margins above 2 percent. 17Hayakawa et al (2019) estimate a fixed-cost ratio of PURs for Japan's PTAs. They develop a shortcut method relying only on import data by tariff schemes.…”

mentioning

confidence: 99%

A (more) systematic exploration of the trade effect of product-specific rules of origin

Gourdon¹,

Mélo²,

Gourdon³

2023

SSRN Journal

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“… 13 Hayakawa et al (2019) estimate a fixed-cost ratio of PURs for Japan's PTAs. They develop a shortcut method relying only on import data by tariff schemes.…”

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confidence: 99%

A (More) Systematic Exploration of the Trade Effect of Product-Specific Rules of Origin

Gourdon,

de Melo

2023

World Trade Review

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Rules of Origin (RoO) are critical components of Preferential Trade Agreements (PTAs). They are designed to stop products coming into a PTA through the partner that applies the lowest tariff – a phenomenon known as trade deflection. While RoO are necessary, complex RoO may undo the benefits of trade agreements. Using a novel database of RoO, this paper evaluates the incidence and restrictiveness of different types of Product-Specific Rules of Origin (PSRs) across 128 reciprocal PTAs for the period 1990–2015. Results, based on a structural gravity model controlling for confounding factors, display wide heterogeneity across different categories of PSRs attached to preferential margins, with more flexible PSRs associated with a significantly stronger trade effect compared to more restrictive ones where exporters do not have a choice among PSRs or have to satisfy multiple PSRs. A simulation exercise reveals that a radical simplification reform leading to the adoption of flexible PSRs providing alternative choices to prove origin would have increased global trade under PTAs on average by between 2.7 and 4% during the sample period.

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Firm-Level Utilization Rates of Regional Trade Agreements: Importers’ Perspective

Cited by 3 publications

References 13 publications

Factors Determining Utilization of Free Trade Agreements by Indian Textile and Clothing Companies: A Conceptual Framework Model

Factors Determining Utilization of Free Trade Agreements by Indian Textile and Clothing Companies: A Conceptual Framework Model

A (more) systematic exploration of the trade effect of product-specific rules of origin

A (More) Systematic Exploration of the Trade Effect of Product-Specific Rules of Origin

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