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Measuring fixed costs for firms’ use of a free trade agreement: Threshold regression approach

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Author Info

  • Hayakawa, Kazunobu

Abstract

By employing the threshold regression method, we estimate the average tariff equivalent of fixed costs for the use of a free trade agreement (FTA) among all existing FTAs in the world. It is estimated to be around 3%.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 113 (2011)
Issue (Month): 3 ()
Pages: 301-303

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Handle: RePEc:eee:ecolet:v:113:y:2011:i:3:p:301-303

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Web page: http://www.elsevier.com/locate/ecolet

Related research

Keywords: FTA; Gravity equation; Threshold regression;

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Cited by:
  1. Hayakawa, Kazunobu, 2012. "Impact of diagonal cumulation rule on FTA utilization : evidence from bilateral and multilateral FTAs between Japan and Thailand," IDE Discussion Papers 372, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  2. Chang, Kuo-I & Hayakawa, Kazunobu, 2012. "Selection and utilization of the early harvest list : evidence from the Free Trade Agreement between China and Taiwan," IDE Discussion Papers 365, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  3. Hayakawa, Kazunobu, 2012. "Impacts of FTA utilization on firm performance," IDE Discussion Papers 366, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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