IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-05635137.html

Rules of Origins Relaxation and Regional Supply Chains: Evidence from Europe

Author

Listed:
  • Pamela Bombarda

    (CY - CY Cergy Paris Université, THEMA - Théorie économique, modélisation et applications - CNRS - Centre National de la Recherche Scientifique - CY - CY Cergy Paris Université)

  • Elisa Gamberoni

    (WBG = GBM - World Bank Group = Groupe Banque Mondiale)

  • Irene Iodice

    (UNIBI - Universität Bielefeld = Bielefeld University - NEOLAiA - NEOLAiA European University = Université Européenne NEOLAÏA)

Abstract

Rules of Origin (RoO) and cumulation provisions in Free Trade Agreements (FTAs) define how firms can source inputs while maintaining preferential access. Using a newly constructed database of detailed RoO regulations in the European Union, we examine how these origin requirements shape supply chains by studying two major policy changes in Europe: the PECS framework, which enabled production sharing among the EU’s peripheral FTA partners, and the 2004 EU enlargement, which eliminated RoO entirely for newly acceded members. Our results show that RoO significantly affect trade patterns–a 1% increase in value requirements before relaxation led to a 0.4-0.7% rise in intermediate imports from countries where restrictions were lifted. This response is generally stronger when preferential margins for final goods are high, suggesting that RoO interact with tariff preferences to shape global value chains. These findings underscore the trade-off policymakers face between protecting regional production through origin requirements and promoting economic integration and supply chain efficiency.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Pamela Bombarda & Elisa Gamberoni & Irene Iodice, 2025. "Rules of Origins Relaxation and Regional Supply Chains: Evidence from Europe," Post-Print hal-05635137, HAL.
    • Handle: RePEc:hal:journl:hal-05635137
    DOI: 10.1162/rest.a.1619
    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
    for a similarly titled item that would be available.

    Other versions of this item:

    More about this item

    Keywords

    ;

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

    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:hal:journl:hal-05635137. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.