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Tariff scheme choice

Author

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  • Hayakawa, Kazunobu
  • Nuttawut, Laksanapanyakul
  • Yoshimi, Taiyo

Abstract

This study examines the determinants of the probability that exporters choose between a most-favored nation (MFN) scheme and multiple regional trade agreement (RTA) schemes. It estimates a nested logit model using a transaction-level import data for Thailand from other ASEAN countries in 2014. The study finds that RTA schemes are more likely to be chosen rather than the MFN scheme in case of a larger transaction value. Among RTA schemes, the one with less restrictive rules of origin or lower RTA tariff rates is more likely to be chosen. In addition to some results of simulation analyses, this study provides some quantitative interpretation of our estimation results.

Suggested Citation

  • Hayakawa, Kazunobu & Nuttawut, Laksanapanyakul & Yoshimi, Taiyo, 2018. "Tariff scheme choice," IDE Discussion Papers 684, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  • Handle: RePEc:jet:dpaper:dpaper684
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    References listed on IDEAS

    as
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    Cited by:

    1. ANDO Mitsuyo & URATA Shujiro, 2018. "Determinants of FTA Utilization for Japan's Imports: Preferential margins and restrictiveness of rules of origin," Discussion papers 18078, Research Institute of Economy, Trade and Industry (RIETI).

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    More about this item

    Keywords

    RTA; Rules of origin; Discrete choice models; Firm heterogeneity; Thailand; Southeast Asia; International trade; International agreements;
    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

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