IDEAS home Printed from https://ideas.repec.org/a/tpr/asiaec/v15y2016i3p115-134.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: http://www.mitpressjournals.org/doi/pdf/10.1162/ASEP_a_00461
    File Function: link to full text pdf
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Richard E. Baldwin, 2011. "Multilateralising Regionalism: Spaghetti Bowls as Building Blocks on the Path to Global Free Trade," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume I, chapter 2, Edward Elgar Publishing.
    2. Paul Brenton & Miriam Manchin, 2014. "Making EU Trade Agreements Work: The Role of Rules of Origin," World Scientific Book Chapters, in: INTERNATIONAL TRADE, DISTRIBUTION AND DEVELOPMENT Empirical Studies of Trade Policies, chapter 14, pages 299-313, World Scientific Publishing Co. Pte. Ltd..
    3. Fabien Candau & Sébastien Jean, 2005. "What Are EU Trade Preferences Worth for Sub-Saharan Africa and Other Developing Countries?," Working Papers 2005-19, CEPII research center.
    4. Portugal-Perez, Alberto, 2009. "Assessing the impact of political economy factors on rules of origin under NAFTA," Policy Research Working Paper Series 4848, The World Bank.
    5. Calvo-Pardo, Hector & Freund, Caroline & Ornelas, Emanuel, 2009. "The ASEAN Free Trade Agreement: impact on trade flows and external trade barriers," LSE Research Online Documents on Economics 28602, London School of Economics and Political Science, LSE Library.
    6. Céline Carrère & Jaime de Melo, 2015. "Are Different Rules of Origin Equally Costly? Estimates from NAFTA," World Scientific Book Chapters, in: Developing Countries in the World Economy, chapter 12, pages 277-298, World Scientific Publishing Co. Pte. Ltd..
    7. Antoni Estevadeordal & Kati Suominen & Jeremy Harris & José Ernesto López Córdova, 2008. "Gatekeepers of Global Commerce: Rules of Origin and International Economic Integration," IDB Publications (Books), Inter-American Development Bank, number 16558, February.
    8. Aaditya Mattoo & Devesh Roy & Arvind Subramanian, 2003. "The Africa Growth and Opportunity Act and its Rules of Origin: Generosity Undermined?," The World Economy, Wiley Blackwell, vol. 26(6), pages 829-851, June.
    9. Richard E. Baldwin, 2006. "Multilateralising Regionalism: Spaghetti Bowls as Building Blocs on the Path to Global Free Trade," The World Economy, Wiley Blackwell, vol. 29(11), pages 1451-1518, November.
    10. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 691-751, September.
    11. Medalla, Erlinda M. & Balboa, Jenny D., 2009. "ASEAN Rules of Origin: Lessons and Recommendations for Best Practice," Discussion Papers DP 2009-36, Philippine Institute for Development Studies.
    12. repec:idb:brikps:16558 is not listed on IDEAS
    13. Leamer, Edward E, 1974. "The Commodity Composition of International Trade in Manufactures: An Empirical Analysis," Oxford Economic Papers, Oxford University Press, vol. 26(3), pages 350-374, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    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).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Olivier CADOT & Lili Yan ING, 2014. "How Restrictive Are ASEAN's RoO?," Working Papers DP-2014-18, Economic Research Institute for ASEAN and East Asia (ERIA).
    2. Low, Patrick & Piermartini, Roberta & Richtering, Jurgen, 2005. "Multilateral solutions to the erosion of non-reciprocal preferences in NAMA," WTO Staff Working Papers ERSD-2005-05, World Trade Organization (WTO), Economic Research and Statistics Division.
    3. Sinéad Kelleher, 2012. "Playing by the Rules? The Development of an Amended Index to Measure the Impact of Rules of Origin on Intra-PTA Trade Flows," Working Papers 201222, School of Economics, University College Dublin.
    4. Bernard Hoekman & Stefano Inama, 2017. "Rules of Origin as Non-Tariff Measures: Towards Greater Regulatory Convergence," RSCAS Working Papers 2017/45, European University Institute.
    5. Bruno, Randolph Luca & Campos, Nauro & Estrin, Saul & Tian, Meng, 2016. "Foreign direct investment and the relationship betweenthe United Kingdom and the European Union," LSE Research Online Documents on Economics 69025, London School of Economics and Political Science, LSE Library.
    6. Kuang-Hann Chou & Chien-Hsun Chen & Chao-Cheng Mai, 2015. "Factors Influencing China's Exports with a Spatial Econometric Model," The International Trade Journal, Taylor & Francis Journals, vol. 29(3), pages 191-211, August.
    7. Antoine Bouët & Lionel Fontagné & Sébastien Jean, 2005. "Is Erosion of Tariff Preferences a Serious Concern?," Working Papers 2005-14, CEPII research center.
    8. Dominik Naeher, 2015. "An Empirical Estimation of Asia's Untapped Regional Integration Potential Using Data Envelopment Analysis," Asian Development Review, MIT Press, vol. 32(2), pages 178-195, September.
    9. Pierre-Louis Vézina, 2014. "Race-to-the-bottom Tariff Cutting," Review of International Economics, Wiley Blackwell, vol. 22(3), pages 444-458, August.
    10. Egger, Peter & MILE 02, Anirudh Shingal, 2014. "Determinants of services trade agreements," Papers 721, World Trade Institute.
    11. (ed.), 0. "Research Handbook on Economic Diplomacy," Books, Edward Elgar Publishing, number 16053.
    12. Asian Development Bank (ADB), 2013. "Asian Economic Integration Monitor March 2013," ADB Reports RPS135470-3, Asian Development Bank (ADB), revised 05 Nov 2013.
    13. Park, Innwon & Park, Soonchan, 2009. "Consolidation and Harmonization of Regional Trade Agreements (RTAs): A Path Toward Global Free Trade," MPRA Paper 14217, University Library of Munich, Germany, revised 23 Mar 2009.
    14. Denis Medvedev, 2010. "Preferential trade agreements and their role in world trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(2), pages 199-222, June.
    15. Andrew G. Brown & Robert M. Stern, 2011. "Free Trade Agreements and Governance of the Global Trading System," The World Economy, Wiley Blackwell, vol. 34(3), pages 331-354, March.
    16. DeMaria, Federica & Drogue, Sophie & Matthews, Alan, 2008. "Agro-Food Preferences in the EU's GSP Scheme: An Analysis of Changes between 2004 and 2006," Working Papers 6151, TRADEAG - Agricultural Trade Agreements.
    17. Kuwayama, Mikio & Rosales V., Osvaldo, 2012. "China and Latin America and the Caribbean: building a strategic economic and trade relationship," Libros de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 2599 edited by Eclac, May.
    18. Bureau, Jean-Christophe & Chakir, Raja & Gallezot, Jacques, 2006. "The Utilisation of EU and US Trade Preferences for Developing Countries in the Agri-Food Sector," Working Papers 18867, TRADEAG - Agricultural Trade Agreements.
    19. Osman, Rehab Osman Mohamed, 2012. "The EU Economic Partnership Agreements with Southern Africa: a computable general equilibrium analysis," Economics PhD Theses 0412, Department of Economics, University of Sussex Business School.
    20. Hoekman. Bernard & Prowse, Susan, 2005. "Economic policy responses to preference erosion : from trade as aid toaid for trade," Policy Research Working Paper Series 3721, The World Bank.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tpr:asiaec:v:15:y:2016:i:3:p:115-134. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kelly McDougall (email available below). General contact details of provider: https://direct.mit.edu/journals .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.