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Did the least developed countries benefit from duty-free quota-free access to the Japanese market?

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  • Ito, Tadashi
  • Aoyagi, Takahide

Abstract

Through the WTO’s Doha round initiatives, countries classified as least developed countries (LDCs) were granted duty-free quota-free (DFQF) access to the Japanese market. This study examines the impact of that access and finds that, in general, it benefited the LDCs. The construction of concordance tables for Japan's 9-digit tariff line codes over 19 years enables analyses at the tariff line level, which overcomes a possible aggregation bias. The exogenous nature of DFQF access mitigates the endogeneity problem. The triple difference estimator shows that in general the LDCs benefited from DFQF access to the Japanese market. Tariff lines which were granted zero tariffs and substantial preference margins over other countries resulted in successful imports into the Japanese market.

Suggested Citation

  • Ito, Tadashi & Aoyagi, Takahide, 2019. "Did the least developed countries benefit from duty-free quota-free access to the Japanese market?," Japan and the World Economy, Elsevier, vol. 49(C), pages 32-39.
    • Handle: RePEc:eee:japwor:v:49:y:2019:i:c:p:32-39
    DOI: 10.1016/j.japwor.2018.09.002
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    Cited by:

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    3. Gnangnon, Sèna Kimm, 2021. "Effect of the Utilization of Non-Reciprocal Trade Preferences offered by the QUAD on Economic Growth in Beneficiary Countries," EconStor Preprints 242848, ZBW - Leibniz Information Centre for Economics.
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    7. Ari Van Assche, . "Why it is time for a “Global Value Chains for Least Developed Countries Initiative”," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    8. Baek, Youngmin & Hayakawa, Kazunobu & Tsubota, Kenmei & Urata, Shujiro & Yamanouchi, Kenta, 2021. "Tariff Pass-through in Wholesaling: Evidence from Firm-level Data in Japan✰," Journal of the Japanese and International Economies, Elsevier, vol. 62(C).
    9. Aoyagi, Takahide & Ito, Tadashi & Matsuura, Toshiyuki, 2022. "Welfare gains through globalization: Evidence from Japan's manufacturing sector," Journal of the Japanese and International Economies, Elsevier, vol. 64(C).
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    More about this item

    Keywords

    LDCs; Japan; Tariff liberalisation; Duty-free quota-free access; WTO Doha Round;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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