Firm-level Utilization Rates of Regional Trade Agreements: Importers’ Perspective

Kazunobu Hayakawa, Nuttawut Laksanapanyakul and Taiyo Yoshimi

Journal of Asian Economics, 2023, vol. 86, issue C

Abstract: This study provides evidence of firm-level utilization of regional trade agreements (RTAs) using transaction-level import data for Thailand. Two stylized facts are presented: some firms use RTA schemes in imports from RTA partner countries, whereas others do not; among firms that import from RTA partner countries under RTA schemes, some use RTA schemes for all transactions but others use them only for some transactions. To interpret these observations, we focus on the role of importers’ demand size. Specifically, we reveal that import firm-product-level RTA utilization rates are higher for larger-size importers in terms of demand, indicating that the difference in the share of utilization of RTA schemes across importers stems from the difference in the importers’ demand size. We also find that the utilization rates are higher when the preference margin, defined as most-favored-nation tariff rate minus RTA rate, is larger.

Keywords: RTA utilization; Customs data; Thailand (search for similar items in EconPapers)
JEL-codes: F15 F53 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Working Paper: Firm-level utilization rates of regional trade agreements: importers' perspective (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:asieco:v:86:y:2023:i:c:s1049007823000301

DOI: 10.1016/j.asieco.2023.101610

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