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Who Uses Free Trade Agreements?

Author

Listed:
  • 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.

Suggested Citation

  • Kazunobu HAYAKAWA & Daisuke HIRATSUKA & Kohei SHIINO & Seiya SUKEGAWA, 2009. "Who Uses Free Trade Agreements?," Working Papers DP-2009-22, Economic Research Institute for ASEAN and East Asia (ERIA).
  • Handle: RePEc:era:wpaper:dp-2009-22
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    References listed on IDEAS

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    1. Yescombe, E. R. & Yescombe, E. R., 2007. "Public-Private Partnerships," Elsevier Monographs, Elsevier, edition 1, number 9780750680547.
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    Cited by:

    1. Mari PANGESTU & Lili Yan ING, 2015. "ASEAN: Regional Integration and Reforms," Working Papers DP-2015-69, Economic Research Institute for ASEAN and East Asia (ERIA).
    2. Naoto Jinji & Yoshihiro Mizoguchi, 2016. "Optimal Rules of Origin with Asymmetric Compliance Costs under International Duopoly," Journal of Industry, Competition and Trade, Springer, vol. 16(1), pages 1-24, March.
    3. Rafaelita M. Aldaba, 2015. "How are Firms Responding to Philippine Free Trade Agreements?," Working Papers id:7145, eSocialSciences.
    4. Hayakawa Kazunobu, 2015. "Impacts of FTA Utilization on Firm Performance," The B.E. Journal of Economic Analysis & Policy, De Gruyter, pages 1325-1352.
    5. Kazuhiro Takauchi, 2014. "Rules of Origin and Strategic Choice of Compliance," Journal of Industry, Competition and Trade, Springer, pages 287-302.
    6. Richard Baldwin, 2013. "Lessons from the European Spaghetti Bowl," Trade Working Papers 23411, East Asian Bureau of Economic Research.
    7. Alfie Ulloa & Rodrigo Wagner, 2012. "Why don't All Exporters Benefit from Free Trade Agreements?: Estimating Utilization Costs," IDB Publications (Working Papers) 4635, Inter-American Development Bank.
    8. Olivier Cadot & Lili Yan Ing, . "How Restrictive Are ASEAN's Rules of Origin?," Chapters, Economic Research Institute for ASEAN and East Asia (ERIA).
    9. Hamanaka, Shintaro, 2013. "A note on detecting biases in assessing the use of FTAs," Journal of Asian Economics, Elsevier, pages 24-32.
    10. Hayakawa, Kazunobu & Yamashita, Nobuaki, 2011. "The role of Preferential Trade Agreements (PTAs) in facilitating global production networks," IDE Discussion Papers 280, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    11. Lili Yan Ing & Shujiro Urata & Yoshifumi Fukunaga, . "How Do Exports and Imports Affect the Use of Free Trade Agreements? Firm-level Survey Evidence from Southeast Asia," Chapters, Economic Research Institute for ASEAN and East Asia (ERIA).
    12. 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).
    13. Hayakawa Kazunobu, 2015. "Impacts of FTA Utilization on Firm Performance," The B.E. Journal of Economic Analysis & Policy, De Gruyter, pages 1325-1352.
    14. Rafaelita M. Aldaba & Erlinda M. Medalla & Josef T. Yap & Mureen Ane D. Rosellon & Fatima Lourdes E. del Prado & Melalyn C. Mantaring & Veredigna M. Ledda, . "Survey Report on the Use of Free Trade Agreements in the Philippines," Chapters, Economic Research Institute for ASEAN and East Asia (ERIA).

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