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Effects of Japan's Economic Partnership Agreements on the Extensive Margin of International Trade

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  • Xuan Dong Nguyen

Abstract

This article investigates the effects of Japan's economic partnership agreements (EPAs) on the Japanese import variety with respect to tariff reductions and outward foreign direct investments. The study is focused on the impact of changing tariffs and investments on the range of goods that EPA partners export to Japan for the periods 2005-10 and 2007-12. By using disaggregate tariff and trade data at the nine-digit HS level and by introducing the logit estimates with goods-specific effects, the article finds that both tariff reductions and Japan's outward foreign direct investment help increase the likeliness of a commodity in the industrial sector to be exported to Japan from its EPA partner countries in the periods 2005-10 and 2007-12.

Suggested Citation

  • Xuan Dong Nguyen, 2014. "Effects of Japan's Economic Partnership Agreements on the Extensive Margin of International Trade," The International Trade Journal, Taylor & Francis Journals, vol. 28(2), pages 169-191, June.
    • Handle: RePEc:taf:uitjxx:v:28:y:2014:i:2:p:169-191
    DOI: 10.1080/08853908.2013.863170
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    References listed on IDEAS

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    1. Timothy J. Kehoe & Kim J. Ruhl, 2013. "How Important Is the New Goods Margin in International Trade?," Journal of Political Economy, University of Chicago Press, vol. 121(2), pages 358-392.
    2. Mohler, Lukas, 2009. "Globalization and the gains from variety: size and openness of countries and the extensive margin," MPRA Paper 17592, University Library of Munich, Germany.
    3. Asier Minondo & Francisco Requena Silvente, 2010. "Welfare gains from imported varieties in Spain, 1988-2006," Working Papers. Serie EC 2010-12, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
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    Cited by:

    1. Said, Rashidi & Ismail, Normaz Wana, 2018. "The Impacts of Malaysian Free Trade Agreements on Margins of Trade," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 52(1), pages 169-178.
    2. Postigo, Antonio, 2022. "Utilization of GSP schemes as a political and economic determinant of the utilization of North-South FTAs," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 29(5), pages 1420-1447.

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