Does the use of multiple FTAs force firms to raise local input share? : evidence of the spaghetti bowl phenomenon
AbstractThis paper empirically investigates the firm-level relationship between the local input share and the number of used FTAs by employing the data on FTA utilization in Japanese affiliates in ASEAN. As a result, we do not find a robust linear relationship. However, affiliates using a large number of FTAs (seven or eight) have an extremely higher share of local inputs. This result might be interpreted as the first evidence of the â€œspaghetti bowl phenomenonâ€.
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Bibliographic InfoPaper provided by Institute of Developing Economies, Japan External Trade Organization(JETRO) in its series IDE Discussion Papers with number 364.
Date of creation: Aug 2012
Date of revision:
Publication status: Published in IDE Discussion Paper. No. 364. 2012.8
Postal: Publication Office, IDE 3-2-2 Wakaba, Mihama-ku, Chiba-shi, Chiba 261-8545 JAPAN
Find related papers by JEL classification:
- F15 - International Economics - - Trade - - - Economic Integration
- F53 - International Economics - - International Relations and International Political Economy - - - International Agreements and Observance; International Organizations
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
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