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The EU's reform in rules of origin and international trade : evidence from Cambodia

Author

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  • Tanaka, Kiyoyasu

Abstract

The European Union (EU) has unilaterally granted developing countries with preferential access to the EU markets under the Generalized System of Preferences (GSP). To obtain preferential access, exporters in beneficiary countries must follow rules of origin (ROO) in the EU’s GSP. The previous ROO were criticized as restrictive because production costs increase with a restriction on imported inputs from the lowest-cost third countries and the administrative process of proving origin. To simplify the restrictive ROO, the EU’s reform process started in 2003, and a new regulation came into force on January 1, 2011. This paper estimates the causal impact of simplifying ROO on garment exports in a beneficiary country, Cambodia, during the period 2007-2015.

Suggested Citation

  • Tanaka, Kiyoyasu, 2020. "The EU's reform in rules of origin and international trade : evidence from Cambodia," IDE Discussion Papers 770, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper770
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    File URL: https://ir.ide.go.jp/?action=repository_action_common_download&item_id=51632&item_no=1&attribute_id=22&file_no=1
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    Citations

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    Cited by:

    1. Tobias Sytsma, 2021. "Rules of origin and trade preference utilization among least developed countries," Contemporary Economic Policy, Western Economic Association International, vol. 39(4), pages 701-718, October.

    More about this item

    Keywords

    Rules of origin; GSP; trade; FDI; Cambodia; EU; International trade;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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