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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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    Citations

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    Cited by:

    1. Mari Pangestu & Lili Yan Ing, 2016. "ASEAN: Regional Integration and Reforms," Asian Economic Papers, MIT Press, vol. 15(2), pages 44-60, Summer.
    2. Rafaelita M. Aldaba, 2015. "How are Firms Responding to Philippine Free Trade Agreements?," Working Papers id:7145, eSocialSciences.
    3. Lukaszuk, Piotr & Legge, Stefan, 2019. "Which Factors Determine the Utilization of Preferential Tariff Rates?," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203639, Verein für Socialpolitik / German Economic Association.
    4. Suthiphand Chirathivat & Piti Srisangnam, 2013. "The 2030 Architecture of Association of Southeast Asian Nations Free Trade Agreements," ADBI Working Papers 419, Asian Development Bank Institute.
    5. Hiroshi Mukunoki & Hirofumi Okoshi, 2021. "Tariff elimination versus tax avoidance: free trade agreements and transfer pricing," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 28(5), pages 1188-1210, October.
    6. repec:era:eriabk:2021-impact-of-the-atiga-on-intra-asean-trade is not listed on IDEAS
    7. Ulloa, Alfie & Wagner, Rodrigo, 2012. "Why don't All Exporters Benefit from Free Trade Agreements?: Estimating Utilization Costs," IDB Publications (Working Papers) 4635, Inter-American Development Bank.
    8. 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).
    9. Hamzah, Hanny Zurina, 2012. "The Role of Japanese Automakers in Asean," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 46(1), pages 173-180.
    10. 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).
    11. 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).
    12. Hayakawa Kazunobu, 2015. "Impacts of FTA Utilization on Firm Performance," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(3), pages 1325-1352, July.
    13. Hiroshi Mukunoki & Hirofumi Okoshi, 2021. "Rules of origin and consumer‐hurting free trade agreements," The World Economy, Wiley Blackwell, vol. 44(8), pages 2303-2318, August.
    14. 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.
    15. 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.
    16. Jayant Menon, 2021. "ASEAN s limited regional Integration spells globalisation, not Failure," Departmental Working Papers 2021-02, The Australian National University, Arndt-Corden Department of Economics.
    17. Kazuhiro Takauchi, 2014. "Rules of Origin and Strategic Choice of Compliance," Journal of Industry, Competition and Trade, Springer, vol. 14(2), pages 287-302, June.
    18. Kazunobu Hayakawa, 2020. "Production Networks and Utilization of Free Trade Agreements by Japanese Subsidiaries in ASEAN," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 16(1), pages 121-134, February.
    19. 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).
    20. 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).
    21. Hiroshi Mukunoki & Hirofumi Okoshi, 2025. "Wake Not a Sleeping Lion: Free Trade Agreements and Decision Rights in Multinationals," Review of International Economics, Wiley Blackwell, vol. 33(3), pages 505-518, August.
    22. Legge, Stefan & Lukaszuk, Piotr, 2024. "The firm-level costs of utilizing free trade agreements," International Economics, Elsevier, vol. 178(C).

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