The Effects of Preferential Rules of Origin on Trade Flows
2
조회
0
다운로드
0
인용
0
참고문헌
키워드
초록
This paper estimates the effects of preferential rules of origin (PROOs) on trade flows,using a “treatment” effect model. Exporters meet the content rules for the benefit of trade preferences, which is similar to “self-selection” into treatment. The IV estimation of the treatment effect using OECD data shows that PROOs negatively affect the trade in intermediate inputs and final goods. Estimation results confirm that PROOs are the protectionist instrument, inducing hidden protection through an “effect of tariffs” on imported intermediate inputs, and causing an indirect protective effect on final goods. Since preferential treatments of FTAs are conditional on compliance with PROOs, the effects of FTAs and PROOs move in the opposite direction. The net change in intermediate inputs trade will be smaller than what it would have been without PROOs. Given an inverse relationship between PROOs and intermediate inputs trade, the presence of PROOs will adversely affect final goods trade because a decrease in intermediate inputs trade distorts final goods trade.
Abstract
This paper estimates the effects of preferential rules of origin (PROOs) on trade flows,using a “treatment” effect model. Exporters meet the content rules for the benefit of trade preferences, which is similar to “self-selection” into treatment. The IV estimation of the treatment effect using OECD data shows that PROOs negatively affect the trade in intermediate inputs and final goods. Estimation results confirm that PROOs are the protectionist instrument, inducing hidden protection through an “effect of tariffs” on imported intermediate inputs, and causing an indirect protective effect on final goods. Since preferential treatments of FTAs are conditional on compliance with PROOs, the effects of FTAs and PROOs move in the opposite direction. The net change in intermediate inputs trade will be smaller than what it would have been without PROOs. Given an inverse relationship between PROOs and intermediate inputs trade, the presence of PROOs will adversely affect final goods trade because a decrease in intermediate inputs trade distorts final goods trade.
참고문헌 (24)
- Anderson James E., "Gravity and Gravitas: A Solution to the Border Puzzle", American Economic Review, 93, pp.170~192 (2003)
- Anson, José, "Rules of Origin in North-South Preferential Trading Arrangements with an Application to NAFTA", Review of International Economics, 13(3), pp.501~517 (2005)
- Trade Diversion and Production Sharing, "Arndt, Sven W.", Claremont McKenna College, ~, pp.Working Paper 2004-01 (2004)
- Baier, Scott L., "o Free Trade Agreements Actually Increase Members’ International Trade?", Journal of International Economics, 71, pp.72~95 (2007)
- Baier, Scott L., "Estimating the Effects of Free Trade Agreements on International Trade Flows Using Matching Econometrics", Journal of International Economics, 77, pp.63~76 (2009)
- Cadot, Olivier, "Assessing the Effect of NAFTA’s Rules of Origin" (2002)
- Cadot, Olivier, "Product Specific Rules of Origin in EU and US Preferential Trading Arrangements: An Assessment" (2005)
- Why OECD Countries Should Reform Rules of Origin, "Cadot, Oliver", Centre for Economic Policy Research, ~, pp.Working Paper No. 6172 (2007)
- Cameron, A. Colin, "Microeconometrics Using Stata: Revised Edition" (2010), Stata Press
- Carrere, Celine, "re Different Rules of Origin Equally Costly? Estimates from NAFTA, In The Origin of Goods: Rules of Origin in Regional Trade Agreements" (2006), Oxford University Press
- Deardorff, Alan V., "Fragmentation across Cones, In Fragmentation: New Production Patterns in the New World Economy" (2001), Oxford University Press
- Debaere, Peter, "Greasing the Wheels of International Commerce: Service Market Thickness and Firms’ International Sourcing", Preliminary (2009)
- Egger, Hartmut, "The Trade Structure Effects of Endogenous Regional Trade Agreements", Journal of International Economics, 74, pp.278~298 (2008)
- Negotiating Preferential Market Access: The Case of NAFTA, "Estevadeordal, Antoni", Inter-American Development Bank, ~, pp.Working Paper 3 (1999)
- Feenstra, Robert C, "Advanced International Trade: Theory and Evidence" (2004), Princeton University Press
- Multilateralising Regionalism: Relaxing the Rules of Origin or Can Those Pecs Be Flexed?, "Gasiorek, M", CARIS, ~, pp.Working Paper No. 3 (2007)
- Ghosh, Sucharita, "Are Regional Trading Arrangements Trade Creating?: An Application of Extreme Bounds Analysis", Journal of International Economics, 63(2), pp.369~395 (2004)
- Rules of Origin and Differences Between Tariff Levels in EFTA and in the EC, "Herin, Jan", EFTA, ~, pp.Occasional Paper 13 (1986)
- Jones, Ronald W., "A Framework for Fragmentation, In Fragmentation: New Production Patterns in the World Economy", pp.17~34 (2001), Oxford University Press
- Free Trade Agreements as Proectionist Devices: Rules of Origin, "Kruger, Anne", National Bureau of Economic Research, ~, pp.Working Paper No. 4352 (1993)
- Preference Utilization and Tariff Reduction in European Union Imports from Africa, Caribbean, and Pacific countries, "Manchin, Miriam", World Bank Policy Research, ~, pp.Working Paper 3688 (2005)
- Rules of Origin and the Web of East Asian Free Trade Agreements, "Manchin, Miriam", World Bank Policy Research, ~, pp.Working Paper 4273 (2007)
- Wonnacott, P., "Beyond NAFTA – The Design of a Free Trade Agreement of the Americas, In The Economics of Preferential Trading Agreements", pp.79~107 (1996), AEI Press
- Wooldridge, Jeffrey M., "Econometric Analysis of Cross Section and Panel Data" (2002), MIT Press