Who Uses FTAs?
It is noted that utilization of AFTA 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 follow. First, the larger the affiliate is, or the more diversified its procurementsâ€™ 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 those exporting to developed countries. Third, there are clear differences in FTA utilization depending on affiliatesâ€™ locations and sectors. These results afford a clue to the reasons for the low FTA utilization in East Asia.
|Date of creation:||Jul 2009|
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|Publication status:||Published in IDE Discussion Paper. No. 207. 2009. 07|
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