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 “spaghetti bowl phenomenon”.
|Date of creation:||01 Aug 2012|
|Publication status:||Published in IDE Discussion Paper = IDE Discussion Paper, No. 364. 2012-08-01|
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