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How Do Exports and Imports Affect the Use of Free Trade Agreements? Firm-level Survey Evidence from Southeast Asia

Author

Listed:
  • Lili Yan ING

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

  • Shujiro URATA

    (ERIA and Waseda University)

  • Yoshifumi FUKUNAGA

    (Economic Research Institute for ASEAN and East Asia (ERIA))

Abstract

Based on profit estimations, findings from a firm-level survey of 630 manufacturing firms across Association of Southeast Asian Nations (ASEAN) countries conducted in 2013 showed that a 1 percent increase in the share of exports in total sales will increase the probability of use of free trade agreements (FTAs) by 0.2 percent, whereas a 1 percent increase in the share of imports in total inputs will reduce the probability of use of FTAs by 0.4 percent. Results from locally weighted scatterplot smoothing (LOESS) show that the use of FTAs is tilde-shaped and negative-shaped as a function of exports and imports, respectively.

Suggested Citation

  • Lili Yan ING & Shujiro URATA & Yoshifumi FUKUNAGA, 2016. "How Do Exports and Imports Affect the Use of Free Trade Agreements? Firm-level Survey Evidence from Southeast Asia," Working Papers DP-2016-01, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2016-01
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    References listed on IDEAS

    as
    1. Kazunobu Hayakawa & Daisuke Hiratsuka & Kohei Shiino & Seiya Sukegawa, 2013. "Who Uses Free Trade Agreements?," Asian Economic Journal, East Asian Economic Association, vol. 27(3), pages 245-264, September.
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    6. Ganeshan Wignaraja & Dorothea Lazaro & Genevieve De Guzman, 2010. "Philippines," Chapters, in: Masahiro Kawai & Ganeshan Wignaraja (ed.), Asia’s Free Trade Agreements, chapter 8, Edward Elgar Publishing.
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    8. Takahashi, Katsuhide & Urata, Shujiro, 2010. "On the Use of FTAs by Japanese Firms: Further Evidence," Business and Politics, Cambridge University Press, vol. 12(1), pages 1-15, April.
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    11. Hayakawa Kazunobu, 2015. "Impacts of FTA Utilization on Firm Performance," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(3), pages 1325-1352, July.
    12. 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).
    13. Johnson, Robert C. & Noguera, Guillermo, 2012. "Accounting for intermediates: Production sharing and trade in value added," Journal of International Economics, Elsevier, vol. 86(2), pages 224-236.
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    Cited by:

    1. Bao, Ha Cong Anh, 2016. "The panorama for Vietnam’s Timber Industry with Vietnam-EU Free Trade Agreement (EVFTA): Opportunities and challenges," Papers 979, World Trade Institute.

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    More about this item

    Keywords

    Free Trade Agreement; ASEAN; Regional integration; FTA Utilisation;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F6 - International Economics - - Economic Impacts of Globalization

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