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How Do Exports and Imports Affect the Use of Free Trade Agreements? Firm-level Survey Evidence from Southeast Asia

Author

Listed:
  • Lili Yan ING

    (Economic Research Institute for ASEAN and East Asia (ERIA) and University of Indonesia)

  • Shujiro URATA

    (ERIA and Waseda University)

  • Yoshifumi FUKUNAGA

    (Economic Research Institute for ASEAN and East Asia (ERIA))

Abstract

Based on profit estimations, findings from a firm-level survey of 630 manufacturing firms across Association of Southeast Asian Nations (ASEAN) countries conducted in 2013 showed that a 1 percent increase in the share of exports in total sales will increase the probability of use of free trade agreements (FTAs) by 0.2 percent, whereas a 1 percent increase in the share of imports in total inputs will reduce the probability of use of FTAs by 0.4 percent. Results from locally weighted scatterplot smoothing (LOESS) show that the use of FTAs is tilde-shaped and negative-shaped as a function of exports and imports, respectively.

Suggested Citation

  • Lili Yan ING & Shujiro URATA & Yoshifumi FUKUNAGA, 2016. "How Do Exports and Imports Affect the Use of Free Trade Agreements? Firm-level Survey Evidence from Southeast Asia," Working Papers DP-2016-01, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2016-01
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    References listed on IDEAS

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    1. Ganeshan Wignaraja & Dorothea Lazaro & Genevieve De Guzman, 2010. "Philippines," Chapters, in: Masahiro Kawai & Ganeshan Wignaraja (ed.), Asia’s Free Trade Agreements, chapter 8, Edward Elgar Publishing.
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    10. Prema-chandra Athukorala & Archanun Kohpaiboon, 2011. "Australia-Thailand Trade: Has the FTA Made a Difference?," Departmental Working Papers 2011-12, The Australian National University, Arndt-Corden Department of Economics.
    11. Olivier CADOT & Lili Yan ING, 2014. "How Restrictive Are ASEAN's RoO?," Working Papers DP-2014-18, Economic Research Institute for ASEAN and East Asia (ERIA).
    12. TAKAHASHI Katsuhide & URATA Shujiro, 2008. "On the Use of FTAs by Japanese Firms," Discussion papers 08002, Research Institute of Economy, Trade and Industry (RIETI).
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    Cited by:

    1. Bao, Ha Cong Anh, 2016. "The panorama for Vietnam’s Timber Industry with Vietnam-EU Free Trade Agreement (EVFTA): Opportunities and challenges," Papers 979, World Trade Institute.

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    More about this item

    Keywords

    Free Trade Agreement; ASEAN; Regional integration; FTA Utilisation;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F6 - International Economics - - Economic Impacts of Globalization

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