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Rules of origin and trade preference utilization among least developed countries

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  • Tobias Sytsma

Abstract

This article assesses how the utilization of trade agreements responds to rules of origin revisions that allow for more foreign content in exported products. Using the revision of the rules of origin for apparel products under the European Union's generalized system of preferences as a case study, and a triple‐difference empirical framework, the results indicate that rules of origin act as a significant bottleneck to least developed countries' (LDCs) use of trade preferences. However, heterogeneity in the response of utilization rates across products and LDCs suggests rules of origin revisions may not be a panacea.

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  • Tobias Sytsma, 2021. "Rules of origin and trade preference utilization among least developed countries," Contemporary Economic Policy, Western Economic Association International, vol. 39(4), pages 701-718, October.
    • Handle: RePEc:bla:coecpo:v:39:y:2021:i:4:p:701-718
    DOI: 10.1111/coep.12529
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    Cited by:

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    3. 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.
    4. ANDO Mitsuyo & URATA Shujiro & YAMANOUCHI Kenta, 2022. "Effects of Product-Specific Rules of Origin on Trade in Free Trade Agreements: Evidence from the cases of Japan," Discussion papers 22035, Research Institute of Economy, Trade and Industry (RIETI).
    5. 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.
    6. Gnangnon, Sèna Kimm, 2021. "WTO membership, the membership duration and the utilization of non-reciprocal trade preferences offered by the QUAD Countries," EconStor Preprints 247265, ZBW - Leibniz Information Centre for Economics.
    7. Gnangnon, Sèna Kimm & Iyer, Harish, 2021. "Effect of Aid for Trade and Foreign Direct Investment Inflows on the Utilization of Unilateral Trade Preferences offered by the QUAD countries," EconStor Preprints 238211, ZBW - Leibniz Information Centre for Economics.
    8. Maria Cipollina, 2022. "The Trade Growth under the EU–SADC Economic Partnership Agreement: An Empirical Assessment," Economies, MDPI, vol. 10(12), pages 1-16, November.

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