IDEAS home Printed from https://ideas.repec.org/a/ris/integr/0538.html
   My bibliography  Save this article

Assessing the Political Economy Factors on Trade Integration : Rules of Origin under NAFTA

Author

Listed:
  • Portugal-Perez, Alberto

    (The World Bank)

Abstract

Rules of origin (RoO) are legitimate policy instruments to prevent trade deflection in a Preferential Trade Agreement (PTA) short of a customs union. Yet, when captured by special interest groups, RoO can restrict trade beyond what is needed to prevent trade deflection. By how much do political economy factors account for the stringency of RoO? This study quantifies the impact of both determinants, those deemed as “justifiable” on the ground of preventing trade deflection and those arising from “political economy” forces, on the restrictiveness of RoO under NAFTA. The main finding is that political economy forces, especially from the US, significantly raised the restrictiveness of the RoO. Thus stricter RoO are associated with higher production costs reducing the potential benefits of enhanced market access initially pursued by the agreement.

Suggested Citation

  • Portugal-Perez, Alberto, 2011. "Assessing the Political Economy Factors on Trade Integration : Rules of Origin under NAFTA," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 26, pages 276-305.
    • Handle: RePEc:ris:integr:0538
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gnangnon, Sèna Kimm, 2022. "Effect of the utilization of non-reciprocal trade preferences offered by the QUAD countries on beneficiary countries' economic complexity," Journal of the Japanese and International Economies, Elsevier, vol. 65(C).

    More about this item

    Keywords

    NAFTA; Rules of Origin; Regional Integration; Political Economy;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:integr:0538. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Yunhoe Kim (email available below). General contact details of provider: https://edirc.repec.org/data/desejkr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.