Does the use of multiple FTAs force firms to raise local input share? : evidence of the spaghetti bowl phenomenon
This paper empirically investigates the firm-level relationship between the local input share and the number of used FTAs by employing the data on FTA utilization in Japanese affiliates in ASEAN. As a result, we do not find a robust linear relationship. However, affiliates using a large number of FTAs (seven or eight) have an extremely higher share of local inputs. This result might be interpreted as the first evidence of the â€œspaghetti bowl phenomenonâ€.
|Date of creation:||Aug 2012|
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|Publication status:||Published in IDE Discussion Paper. No. 364. 2012.8|
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