Preferential Trade Arrangements and the Pattern of Production and Trade when Inputs are Differentiated
AbstractThis paper is concerned with rules of origin when intermediate goods are differentiated. An analytical model emphasizes trade patterns and the relative importance of trade in intermediates given trade preferences. Econometric evidence based on intra-OECD trade in motor vehicles and motor vehicle parts points to a systematic impact of trade costs and FTA membership, following from rules of origin and reduction in border measures, on the role of intermediates and their relative importance in production and trade. These results are consistent with a conceptual framework involving rules-base trade costs and two-way trade in differentiated intermediate goods and final goods.
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Bibliographic InfoPaper provided by IIIS in its series The Institute for International Integration Studies Discussion Paper Series with number iiisdp86.
Date of creation: 15 Dec 2005
Date of revision:
rules of origin; trading costs; trade in intermediates; industry location;
Other versions of this item:
- Francois, Joseph, 2005. "Preferential Trade Arrangements and the Pattern of Production and Trade when Inputs are Differentiated," CEPR Discussion Papers 5144, C.E.P.R. Discussion Papers.
- F15 - International Economics - - Trade - - - Economic Integration
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-01-24 (All new papers)
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