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How Restrictive Are ASEAN's Rules of Origin?

Author

Listed:
  • Olivier Cadot

    (Université de Lausanne)

  • Lili Yan Ing

    (Economic Research Institute for ASEAN and East Asia (ERIA)and University of Indonesia)

Abstract

This paper uses a product-level gravity approach to estimate the effect of ASEAN's product-specific rules of origin (ROOs) on regional trade, using original data on rules applicable at the six-digit level of the harmonized system. We find that the average tariff ad valorem equivalent (AVE) of ASEAN's ROOs is 3.40 percent across all instruments and sectors. The trade-weighted average is 2.09 percent. This moderate estimate is in line with the existing literature. We also find fairly high AVEs for some sectors, however, including leather, textile and apparel, footwear, and automobiles. Additionally, we find that some rules appear more restrictive than others; in this regard, the textile rule seems to stand out as a relatively more trade-inhibiting rule than others.

Suggested Citation

  • Olivier Cadot & Lili Yan Ing, 2016. "How Restrictive Are ASEAN's Rules of Origin?," Asian Economic Papers, MIT Press, vol. 15(3), pages 115-134, Fall.
    • Handle: RePEc:tpr:asiaec:v:15:y:2016:i:3:p:115-134
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    References listed on IDEAS

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    1. ANDO Mitsuyo & URATA Shujiro, 2018. "Determinants of FTA Utilization for Japan's Imports: Preferential margins and restrictiveness of rules of origin," Discussion papers 18078, Research Institute of Economy, Trade and Industry (RIETI).

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