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Who Uses FTAs?

Author

Listed:
  • Hayakawa, Kazunobu
  • Hiratsuka, Daisuke
  • Shiino, Kohei
  • Sukegawa, Seiya

Abstract

It is noted that utilization of AFTA is low by international standards. In order to clarify thereasons for such low utilization, this paper investigates what kinds of Japanese affiliates inASEAN are more likely to use FTAs in their exporting, by employing unique affiliate-level data.Our findings are as follow. First, the larger the affiliate is, or the more diversified itsprocurements’ origins are, the more likely it is to utilize an FTA scheme in its exporting. Second,affiliates exporting actively to developing countries are more likely to use FTAs than thoseexporting to developed countries. Third, there are clear differences in FTA utilization dependingon affiliates’ locations and sectors. These results afford a clue to the reasons for the low FTAutilization in East Asia.

Suggested Citation

  • Hayakawa, Kazunobu & Hiratsuka, Daisuke & Shiino, Kohei & Sukegawa, Seiya, 2009. "Who Uses FTAs?," IDE Discussion Papers 207, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper207
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    File URL: https://ir.ide.go.jp/?action=repository_action_common_download&item_id=37962&item_no=1&attribute_id=22&file_no=1
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    References listed on IDEAS

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    1. Takahashi, Katsuhide & Urata, Shujiro, 2010. "On the Use of FTAs by Japanese Firms: Further Evidence," Business and Politics, Cambridge University Press, vol. 12(1), pages 1-15, April.
    2. Kyoji Fukao & Hyeog Ug Kwon, 2006. "Why Did Japan'S Tfp Growth Slow Down In The Lost Decade? An Empirical Analysis Based On Firm‐Level Data Of Manufacturing Firms," The Japanese Economic Review, Japanese Economic Association, vol. 57(2), pages 195-228, June.
    3. Masahiro Endoh, 1999. "Trade creation and trade diversion in the EEC, the LAFTA and the CMEA: 1960-1994," Applied Economics, Taylor & Francis Journals, vol. 31(2), pages 207-216.
    4. Fukunari KIMURA, 2006. "International Production and Distribution Networks in East Asia: Eighteen Facts, Mechanics, and Policy Implications," Asian Economic Policy Review, Japan Center for Economic Research, vol. 1(2), pages 326-344, December.
    5. TAKAHASHI Katsuhide & URATA Shujiro, 2008. "On the Use of FTAs by Japanese Firms," Discussion papers 08002, Research Institute of Economy, Trade and Industry (RIETI).
    6. Arndt, Sven W. & Kierzkowski, Henryk (ed.), 2001. "Fragmentation: New Production Patterns in the World Economy," OUP Catalogue, Oxford University Press, number 9780199243310.
    7. Baier, Scott L. & Bergstrand, Jeffrey H., 2007. "Do free trade agreements actually increase members' international trade?," Journal of International Economics, Elsevier, vol. 71(1), pages 72-95, March.
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    Cited by:

    1. Kimura, Fukunari & Obashi, Ayako, 2011. "Production Networks in East Asia: What We Know So Far," ADBI Working Papers 320, Asian Development Bank Institute.
    2. Mizuno, Tomomichi & Takauchi, Kazuhiro, 2013. "Rules of origin and uncertain cost of compliance," MPRA Paper 44431, University Library of Munich, Germany.

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    More about this item

    Keywords

    FTA; Micro data; ASEAN; International trade; Regional economic cooperation; International economic integration;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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