Tariff scheme choice
- PDF / 793,690 Bytes
- 24 Pages / 439.37 x 666.142 pts Page_size
- 10 Downloads / 218 Views
Tariff scheme choice Kazunobu Hayakawa1 · Nuttawut Laksanapanyakul2 · Taiyo Yoshimi3
© The Author(s) 2020
Abstract This paper examines the determinants of the probability that an exporter chooses between a most-favored nation (MFN) scheme and multiple regional trade agreement (RTA) schemes. We estimate a discrete choice model using transaction-level import data for Thailand in 2014. We find that RTA schemes are more likely to be chosen, given a larger transaction value. Among RTA schemes, the ones with less restrictive rules of origin or lower tariff rates are more likely to be selected. We also conduct simulation analysis to provide quantitative policy implications. Keywords RTA · Rules of origin · Discrete choice models · Firm heterogeneity · Tariff choice We thank Fukunari Kimura, Kozo Kiyota, Toshiyuki Matsuura, Hiroshi Mukunoki, Toshihiro Okubo, Hisamitsu Saito, Yoichi Sugita; the seminar participants at the Institute of Developing Economies (IDE-JETRO), the Japan Society of International Economics, Korea and the World Economy Conference, Nagoya Macroeconomics Workshop, Waseda University, Gakushuin University, Hokkaido University, Nanzan University, and Senshu University; and two anonymous referees for their invaluable comments and suggestions. Hayakawa acknowledges financial support from the JSPS under KAKENHI Grant Number JP17H02530; and Yoshimi acknowledges financial support from the JSPS under KAKENHI Grant Number JP16H03638 and JP20H01518. All remaining errors are ours. Electronic supplementary material The online version of this article (https://doi.org/10.1007/s1029 0-020-00397-9) contains supplementary material, which is available to authorized users. * Taiyo Yoshimi [email protected]‑u.ac.jp Kazunobu Hayakawa kazunobu_hayakawa@ide‑gsm.org Nuttawut Laksanapanyakul [email protected] 1
Development Studies Center, Institute of Developing Economies, Wakaba 3‑2‑2, Mihama‑ku, Chiba‑shi, Chiba 261‑8545, Japan
2
Science and Technology Development Program, Thailand Development Research Institute, 565 Ramkhamaeng 39 (Thepleela) Wangthonglang, Bangkok 10310, Thailand
3
Faculty of Economics, Chuo University, 742‑1 Higashinakano, Hachioji‑shi, Tokyo 192‑0393, Japan
13
Vol.:(0123456789)
K. Hayakawa et al.
JEL Classification F15 · F53
1 Introduction During the 2010s, regional trade agreements (RTAs) were negotiated among numerous countries to reap the benefits of trade liberalization. RTAs with many countries are called “mega” RTAs. Recent examples of mega RTAs include the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP); the Transatlantic Trade and Investment Partnership; and the Regional Comprehensive Economic Partnership (RCEP). RTA networks between each country pair will likely overlap with mega RTAs. For example, Mexico entered into the North American Free Trade Agreement (NAFTA) with Canada and the U.S., which overlaps with the CPTPP. Mexican firms must choose between a most-favored-nation (MFN) scheme and multiple RTA schemes (NAFTA or CPTPP) when they
Data Loading...
