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Measuring fixed costs for firms’ use of a free trade agreement: Threshold regression approach

Kazunobu Hayakawa ()

Economics Letters, 2011, vol. 113, issue 3, 301-303

Abstract: By employing the threshold regression method, we estimate the average tariff equivalent of fixed costs for the use of a free trade agreement (FTA) among all existing FTAs in the world. It is estimated to be around 3%.

Keywords: FTA; Gravity equation; Threshold regression (search for similar items in EconPapers)
JEL-codes: F15 F53 (search for similar items in EconPapers)
Date: 2011
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