| Budget Amount *help |
¥10,790,000 (Direct Cost: ¥8,300,000、Indirect Cost: ¥2,490,000)
Fiscal Year 2016: ¥2,600,000 (Direct Cost: ¥2,000,000、Indirect Cost: ¥600,000)
Fiscal Year 2015: ¥2,340,000 (Direct Cost: ¥1,800,000、Indirect Cost: ¥540,000)
Fiscal Year 2014: ¥5,850,000 (Direct Cost: ¥4,500,000、Indirect Cost: ¥1,350,000)
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| Outline of Final Research Achievements |
This project examined the impact of free trade agreement (FTA) use on tariff-exclusive trade prices. For this analysis, we employ establishment-level trade data with information on tariff schemes, that is, the FTA and most-favored-nation schemes used for trading. Our analysis on Korea's exporting to Thailand show the following results. First, on average, firms' FTA use reduces tariffs by 12 percentage points and raises trade prices by 3.6%-6.7%. Second, we do not find a price rise resulting from the costs of complying with rules of origin. Such price rise is simply driven by the increase of demand through the effect of tariff reduction on consumer prices.
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