Exporter's Benefits from Preference Utilization

2017 Fiscal Year Final Research Report

• Project/Area Number: 26705002
• Research Category: Grant-in-Aid for Young Scientists (A)
• Allocation Type: Partial Multi-year Fund
• Research Field: Economic policy
• Research Institution: Institute of Developing Economies, Japan External Trade Organization
• Principal Investigator: HAYAKAWA KAZUNOBU 独立行政法人日本貿易振興機構アジア経済研究所, 研究企画部, 海外研究員 (40458948)
• Project Period (FY): 2014-04-01 – 2017-03-31
• Keywords: 自由貿易協定

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.

Free Research Field

国際貿易