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Who Uses Free Trade Agreements?

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Author Info

  • Kazunobu HAYAKAWA

    (Institute of Developing Economies, Japan External Trade Organization, Japan)

  • Daisuke HIRATSUKA

    (Institute of Developing Economies, Japan External Trade Organization, Japan)

  • Kohei SHIINO

    (Overseas Research Department, Japan External Trade Organization, Japan)

  • Seiya SUKEGAWA

    (Overseas Research Department, Japan External Trade Organization, Japan)

Abstract

It is noted that utilization of ASEAN Free Trade Agreements (FTAs) is low by international standards. In order to clarify the reasons for such low utilization, this paper investigates what kinds of Japanese affiliates in ASEAN are more likely to use FTAs in their exporting, by employing unique affiliate-level data. Our findings are as follows. First, the larger the affiliate is, or the more diversified the origins of its procurements, the more likely it is to utilize an FTA scheme in its exporting. Second, affiliates that export actively to countries with higher general tariffs are more likely to use FTAs. Third, there are clear differences in FTA utilization depending affiliates, locations and sectors.

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File URL: http://eria.org/ERIA-DP-2009-22.pdf
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Bibliographic Info

Paper provided by Economic Research Institute for ASEAN and East Asia (ERIA) in its series Working Papers with number DP-2009-22.

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Length: 22 pages.
Date of creation: 01 Nov 2009
Date of revision:
Handle: RePEc:era:wpaper:dp-2009-22

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Cited by:
  1. Hamanaka, Shintaro, 2013. "A note on detecting biases in assessing the use of FTAs," Journal of Asian Economics, Elsevier, vol. 29(C), pages 24-32.
  2. Chirathivat, Suthiphand & Srisangnam, Piti, 2013. "The 2030 Architecture of Association of Southeast Asian Nations Free Trade Agreements," ADBI Working Papers 419, Asian Development Bank Institute.
  3. Hayakawa, Kazunobu & Yang, Chih-Hai, 2013. "How do free trade agreements change import prices? : firm-level evidence from China's imports from ASEAN," IDE Discussion Papers 436, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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