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Firm-level Impact of Free Trade Agreements on Import Prices

Author

Listed:
  • Kazunobu HAYAKAWA

    (Bangkok Research Center, Institute of Developing Economies, Thailand)

  • Nuttawut LAKSANAPANYAKUL

    (Science and Technology Development Program, Thailand Development Research Institute, Thailand)

  • Shujiro URATA

    (Graduate School of Asia-Pacific Studies, Waseda University, Japan)

Abstract

We examine the firm-level impact of the use of free trade agreement (FTA) schemes on import prices by employing firm-level import data that enables us to identify the use of different tariff schemes, such as FTA schemes and most favoured nation (MFN) schemes. Unlike the previous studies, we estimate the firm-level effects of FTA use on import prices by controlling for firms’ characteristics. We find that, on average, the use of FTA schemes raises (tariffexclusive) import prices by 3 percent in total. Interestingly, the use of FTA schemes raises import prices even if FTA rates are same as MFN rates. We also find that the large-sized firms in terms of import values reduce the positive effects of the use of FTA schemes on import prices.

Suggested Citation

  • Kazunobu HAYAKAWA & Nuttawut LAKSANAPANYAKUL & Shujiro URATA, 2015. "Firm-level Impact of Free Trade Agreements on Import Prices," Working Papers DP-2015-33, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2015-33
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    References listed on IDEAS

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    5. Mari Pangestu & Lili Yan Ing, 2016. "ASEAN: Regional Integration and Reforms," Asian Economic Papers, MIT Press, vol. 15(2), pages 44-60, Summer.
    6. Dionisius A. NARJOKO, 2015. "AEC Blueprint Implementation Performance and Challenges: Non-Tariff Measures and Non-Tariff Barriers," Working Papers DP-2015-36, Economic Research Institute for ASEAN and East Asia (ERIA).
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    14. Venkatachalam ANBUMOZHI & Phoumin HAN, 2015. "Policy Effects on Total System Energy Efficiency: Comparisons of Advanced and Developing Economies in the EAS region," Working Papers DP-2015-67, Economic Research Institute for ASEAN and East Asia (ERIA).
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    16. Venkatachalam ANBUMOZHI, 2016. "Convergence of Opportunities: Resilience and the ASEAN Community," Working Papers DP-2016-02, Economic Research Institute for ASEAN and East Asia (ERIA).
    17. Philippa DEE, 2015. "Monitoring the Implementation of Services Trade Reform towards an ASEAN Economic Community," Working Papers DP-2015-44, Economic Research Institute for ASEAN and East Asia (ERIA).
    18. Toshitaka GOKAN & Ikuo KUROIWA & Nuttawut LAKSANAPANYAKUL & Yasushi UEKI, 2015. "Spatial Patterns of Manufacturing Agglomeration in Cambodia, Lao People’s Democratic Republic, and Thailand," Working Papers DP-2015-68, Economic Research Institute for ASEAN and East Asia (ERIA).
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    20. Robin SAKAMOTO, 2015. "Investing in Higher Education, and Its Potential Impact on Research and Development for Technological Upgrading, Innovation, and Competitiveness," Working Papers DP-2015-52, Economic Research Institute for ASEAN and East Asia (ERIA).
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    More about this item

    Keywords

    FTA; Prices; Thailand;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions

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