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Multiple preference regimes and rules of origin

Author

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  • Hayakawa, Kazunobu

Abstract

This study examines Japan’s preferential imports from three least developed countries (LDCs), i.e., Cambodia, Laos, and Myanmar, from 2013 to 2016. In these trade flows, two preference regimes are available in a ddition to a most favored nation regime: the Generalized System of Preferences (GSP) for LDCs (GSP -LDC) and a plurilateral trade agreement among Japan and ASEAN countries (AJCEP). We empirically exam ine how relaxing the rules of origin in GSP-LDC for knitted apparel in 2015 changed the utilization of the GSP -LDC and AJCEP regimes. Our identification strategy relies on comparisons not only between GSP-LDC and AJCEP but also between knitted and woven apparel. As a result, we found that such relaxation significantly incre ases the share of imports under the GSP-LDC regime out of total imports and reduces the share of imports under the AJCEP regime. We further investigate the main drivers of these changes in the shares.

Suggested Citation

  • Hayakawa, Kazunobu, 2019. "Multiple preference regimes and rules of origin," IDE Discussion Papers 738, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper738
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    File URL: https://ir.ide.go.jp/record/50746/files/IDP000738_001.pdf
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    Cited by:

    1. Kazunobu Hayakawa & Kenta Yamanouchi, 2024. "How does the reform of rules of origin affect firm performance in importing countries?," The World Economy, Wiley Blackwell, vol. 47(2), pages 837-856, February.
    2. Phouphet Kyophilavong & Kazunobu Hayakawa, 2024. "Impacts of Trade Liberalization in the Least Developed Countries: Evidence From Lao PDR," The Developing Economies, Institute of Developing Economies, vol. 62(1), pages 45-67, March.

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    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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