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Impacts of common rules of origin on FTA utilization

Author

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  • Kazunobu Hayakawa

    (Institute of Developing Economies)

  • Nuttawut Laksanapanyakul

    (Thailand Development Research Institute)

Abstract

This study empirically examines the impacts of sharing rules of origin (RoOs) with other ASEAN + 1 free trade agreements (FTAs) on ASEAN–Korea FTA/ASEAN–China FTA utilization in Thai exports in 2011. Our detailed empirical analysis suggests that the harmonization of RoOs across FTAs plays some role in terms of reducing the costs yielded through the spaghetti bowl phenomenon. In particular, the harmonization to “change-in-tariff classification (CTC) or regional value content (RVC)” will play a relatively positive role in not seriously discouraging firms’ use of multiple FTA schemes. In contrast, harmonization to “CTC” or “CTC and RVC” hinders firms from using those schemes.

Suggested Citation

  • Kazunobu Hayakawa & Nuttawut Laksanapanyakul, 2017. "Impacts of common rules of origin on FTA utilization," International Economics and Economic Policy, Springer, vol. 14(1), pages 75-90, January.
    • Handle: RePEc:kap:iecepo:v:14:y:2017:i:1:d:10.1007_s10368-015-0326-y
    DOI: 10.1007/s10368-015-0326-y
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    Cited by:

    1. 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.
    2. Hayakawa, Kazunobu & Laksanapanyakul, Nuttawut & Yoshimi, Taiyo, 2023. "Firm-level Utilization Rates of Regional Trade Agreements: Importers’ Perspective," Journal of Asian Economics, Elsevier, vol. 86(C).
    3. Misa Okabe, . "The Impact of ASEAN +1 FTAs on ASEAN's Trade," Chapters, in: Lili Yan Ing (ed.), East Asian Integration (First Edition), chapter 2, pages 25-66, Economic Research Institute for ASEAN and East Asia (ERIA).
    4. Misa OKABE, 2015. "Impact of Free Trade Agreements on Trade in East Asia," Working Papers DP-2015-01, Economic Research Institute for ASEAN and East Asia (ERIA).

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    More about this item

    Keywords

    Free trade agreement; Rules of origin; Spaghetti bowl phenomenon; Thailand;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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