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Who Uses FTAs?

Author

Listed:
  • Hayakawa, Kazunobu
  • Hiratsuka, Daisuke
  • Shiino, Kohei
  • Sukegawa, Seiya

Abstract

It is noted that utilization of AFTA is low by international standards. In order to clarify thereasons for such low utilization, this paper investigates what kinds of Japanese affiliates inASEAN are more likely to use FTAs in their exporting, by employing unique affiliate-level data.Our findings are as follow. First, the larger the affiliate is, or the more diversified itsprocurements’ origins are, the more likely it is to utilize an FTA scheme in its exporting. Second,affiliates exporting actively to developing countries are more likely to use FTAs than thoseexporting to developed countries. Third, there are clear differences in FTA utilization dependingon affiliates’ locations and sectors. These results afford a clue to the reasons for the low FTAutilization in East Asia.

Suggested Citation

  • Hayakawa, Kazunobu & Hiratsuka, Daisuke & Shiino, Kohei & Sukegawa, Seiya, 2009. "Who Uses FTAs?," IDE Discussion Papers 207, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper207
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    File URL: https://ir.ide.go.jp/record/37962/files/IDP000207_001.pdf
    File Function: First version, 2009
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    References listed on IDEAS

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    7. Katsuhide TAKAHASHI & Shujiro URATA, 2008. "On the Use of FTAs by Japanese Firms," Discussion papers 08002, Research Institute of Economy, Trade and Industry (RIETI).
    8. Arndt, Sven W. & Kierzkowski, Henryk (ed.), 2001. "Fragmentation: New Production Patterns in the World Economy," OUP Catalogue, Oxford University Press, number 9780199243310.
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    Citations

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    Cited by:

    1. Fukunari Kimura & Ayako Obashi, 2016. "Production Networks in East Asia: What We Know So Far," ADB Institute Series on Development Economics, in: Ganeshan Wignaraja (ed.), Production Networks and Enterprises in East Asia, edition 1, chapter 0, pages 33-64, Springer.
    2. Mizuno, Tomomichi & Takauchi, Kazuhiro, 2013. "Rules of origin and uncertain cost of compliance," MPRA Paper 44431, University Library of Munich, Germany.

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    More about this item

    Keywords

    FTA; Micro data; ASEAN; International trade; Regional economic cooperation; International economic integration;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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